Compendium of Trade Facilitation I Recommendations
Item
- Title
-
Compendium of
Trade Facilitation
I Recommendations - extracted text
-
ECONOMIC COMMISSION FOR EUROPE
United Mons Centre for Trade Facilitation
and Electronic Business (UN/CEFACT) ' •
UNCTAD
United Nations Conference
on Trade and Development
Compendium of
Trade Facilitation
I Recommendations
UNCTAD
UNECE
UNITED NATIONS
ECONONOMIC COMMISSION FOR EUROPE
UNITED NATIONS
CONFERENCE ON TRADE AND DEVELOPMENT
Compendium of
Trade Facilitation
Recommendations
UNITED NATIONS
New York and Geneva, 2002
NOTE
The designations employed and the presentation of the material in this
publication do not imply the expression of any opinion whatsoever of the part
of the Secretariat of the United Nations concerning the legal status of any
country, territory, city or area, or of its authorities, or concerning the
delimitation of its frontiers or boundaries.
ECE/TRADE/279
UNCTAD/SDTE/TLB/3
11
FOREWORD
This is the second edition of the Compendium of Trade Facilitation Recommendations. It was
compiled by the United Nations Centre for Trade Facilitation and Electronic Business
(UN/CEFACT), in cooperation with the United Nations Conference on Trade and Development
(UNCTAD). The Compendium was completed in 2000 and was endorsed by the UN/CEFACT
Plenary meeting in March 2001. The original edition of the Compendium, published in 1994, was
compiled within the UNCTAD Special Programme for Trade Efficiency (SPTE).
The Compendium is intended to be used as a reference by those engaged in simplifying,
harmonizing and rationalizing trade procedures and practices. It is also useful for industry,
commerce, transport, administrations and organizations, to create awareness of the possibilities that
exist in the area of facilitation and harmonization of trade and transport.
The Introduction (section I) contains background information on the fundamental and practical
issues that Trade Facilitation addresses. It reviews the present situation in international trade
regarding information flows, documentary requirements, electronic business, official requirements
and payment procedures with a view to coming to an increased efficiency through further
harmonization, standardization and simplification.
Section II provides a structured list of the trade facilitation recommendations included in the
Compendium. Section III contains the complete or abridged text, or a paraphrase as appropriate, of
the Recommendations listed in Section II. These extracts from international instruments are given
for reference purposes, and not as a substitute for the full text, which constitutes the only valid
source for official use.
The various instruments referred to in this Compendium have been elaborated through the work of
mandated international organizations. For each of these organizations, section IV gives a brief
description of the objectives and scope of its respective instruments.
The revised version of the Compendium of Trade Facilitation Recommendations is the
demonstration of the continuing and close collaboration between two United Nations bodies. It is
the hope of both secretariats that the Compendium will prove to be a useful tool for its readers. The
secretariats welcome comments and constructive criticism.
Rubens Ricupero
Secretary-General
United Nations
Conference on Trade and Development
UNCTAD
Paolo Garonna
Acting Executive Secretary
United Nations
Economic Commission for Europe
UNECE
iii
LIST OF ABBREVIA TIONS
General
cco
Customs Convention on Containers
EDI
Electronic Data Interchange
FAL
Convention on Facilitation of International Maritime Traffic
GATS
General Agreement on Trade and Services
GATT
General Agreement on Tariffs and Trade
HAR
International Convention on the Harmonization of Frontier Control of
Goods
HS [Harmonized System]
International Convention on the Harmonized Commodity Description and
Coding System
KC [Kyoto Convention]
International Convention on the Simplification and Harmonization of
Customs Procedures
L/C
Letter of credit
RKC [Revised Kyoto Convention] International Convention on the Simplification and Harmonization of
Customs Procedures
TIR
Transports Internationaux Routiers
TRIPS
Agreement on Trade-Related Aspects of Intellectual Property Rights
UCP
Uniform Customs and Practice for Documentary Credits
UNCID
Uniform rules of Conduct for Interchange of trade Data by teletransmission
UN/EDIFACT
United Nations Electronic Data Interchange for Administration,
Commerce and Transport
UNSMs
United Nations Standard Message Types
UNTDED
United Nations Trade Data Exchange Directory
UNTDID
United Nations Trade Data Interchange Directory
International Organizations and Bodies
ICAO
International Civil Aviation Organization
ICC
International Chamber of Commerce
ICS
International Chamber of Shipping
IMO
International Maritime Organization
ISO
International Organization for Standardization
UN/CEFACT
United Nations Centre for Trade Facilitation and Electronic Business
UNCITRAL
United Nations Commission on International Trade Law
UNCTAD
United Nations Conference on Trade and Development
UNECE
United Nations Economic Commission for Europe
WCO
World Customs Organization
WTO
World Trade Organization
CONTENTS
Foreword
.............................................................................................................................................................. 111
List of Abbreviations................................................................................................................................................... v
SECTION I: INTRODUCTION...............................................................................................................................1
SECTION II: LIST OF TRADE FACILITATION RECOMMENDATIONS........................................................ 9
SECTION III: THE RECOMMENDATIONS....................................................................................................... 17
A. General provisions to facilitate trade............................................................................................................. 17
A.l Trade................................................................................................................................................... 17
A.2 Customs and other regulatory bodies................................................................................................. 19
B. Provisions relating to official procedures and controls................................................................................. 23
B. I Provisions relating to exports...........................................................................................................23
B.1.1 General......................................................................................................................................23
B.1.2 Customs................................................................................................................................... 24
B. 1.3 Official documents..................... ............................................................................................. 25
B.2 Provisions relating to imports............................................................................................................. 26
B.2.1 General...................................................................................................................................... 26
B.2.2 Customs.................................................................................................................................... 27
B.2.3 Official documents.................................................................................................................... 32
B.3 Provisions relating to transit............................................................................................................... 33
B.3.1 General...................................................................................................................................... 33
B.3.2 Customs.................................................................................................................................... 33
B.3.3 Health and Safety...................................................................................................................... 35
B.3.4 Security..................................................................................................................................... 35
B.4 Measures relating to transshipment of goods.....................................................................................35
B.4.1 Customs.................................................................................................................................... 35
B.4.2 Security..................................................................................................................................... 37
C. Provisions relating to transport and transport equipment.............................................................................. 37
C. 1 Air transport...................................................................................................................................... 37
C.2 Sea transport......................................................................................................................................... 38
C.3 Multimodal transport............................................................................................................................ 42
D. Provisions relating to the movement of persons........................................................................................... 45
E. Provisions relating to the management of dangerous goods and harmful substances................................... 45
F. Provisions relating to payment procedures.................................................................................................... 46
G. Provisions relating to the use of Information and Communications Technology (ICT)............................... 47
H. Provisions relating to commercial trade practices and the use of international standards............................ 51
I. Legal aspects of trade facilitation................................................................................................................... 58
SECTION IV:
INTERNATIONAL ORGANIZATIONS DEALING
WITH TRADE FACILITATION................................................................................................. 59
ANNEX:
LIST OF COUNTRIES OR TERRITORIES HAVING ACCEPTED
OR ACCEDED TO TRADE FACILITATION INSTRUMENTS.............................................. 65
vii
Section I
INTRODUCTION
1.1
human intervention is increasingly and globally
applied.
Information Flows
1.1.1 Formalities, procedures and paperwork in
international trade and transport are generated by
the need for both Governments and industry to
monitor and control the movement of goods and the
transfer of services and by the necessity of
safeguarding every party's legitimate interests.
Closely related to this are the diverse requirements
for information and financial flows between all
involved parties. Over the years, trade facilitation
efforts conducted by international or national bodies
in various countries or sectors have introduced
improvements in the information flows, by
analysing
the
processes,
simplifying
the
requirements,
harmonizing
procedures
and
documentation, standardizing commercial practices
and introducing agreed codes for the representation
of information elements. However, certain countries
still maintain requirements which run contrary to
these facilitation efforts, because of historical
precedents, commercial inertia, difficulty in
adjusting the methods of their control bodies, or
ignorance of solutions that have been developed
elsewhere.
1.1.4 The timely arrival of information is a vital
component in any international trade transaction.
However, it still happens frequently that the goods
arrive at the destination before the necessary
essential information is available to enable the
respective operators to perform their function.
1.1.5 Delays in information production and
transfer can be reduced if agreement is reached to
make the maximum use of modem information and
communication technology, e.g. the use of
computers to prepare the required documents,
sending copies by e-mail or Electronic Data
Interchange (EDI). Whenever this is deemed too far
advanced the use of Fax and standard aligned
documents can provide a solution for simplifying
document preparation. However, more needs to be
done to facilitate the information flows (i.e. how the
data are collected, transferred and dealt with). While
part of the answer may lie in the simplification of
the official and commercial procedures themselves,
there should be, in addition, some systematic way of
handling information relevant to the technology
available. The advent of electronic trade tools such
as the Internet and the availability of cheap and
reliable computers even in the least advanced
countries offers huge opportunities.
1.1.2 The processes and systems developed to
link shippers, carriers, port authorities, bankers,
insurance companies, customs, consignees and other
parties in the value chain are constantly being
adapted to meet the changing needs. This is in
particular associated with the speed of modem
transport, the use of containers and express freight
deliveries but also to take advantage of the
possibilities that Information and Communication
technology offer to improve information processing
and transmission.
1.1.6 The problems created by trade documents
and procedures fall into two categories: the supply
of data; and the complexity of some of the
procedures.
1.1.7 As stated above, goods often arrive before
the information which should precede them and
which is essential if they are to be dealt with
expeditiously. Some companies take very expensive
solutions, e.g. the use of courier services, to avoid
delays due to missing documents at critical points in
the transaction chain. However, this can be efficient
only if dispatches are adjusted to the speed of the
best practical performance that can be expected in
average international transactions.
1.1.3 Today information flows are at a point
midway between paper documents still often
painfully filled in by hand, signed and authorized
and those produced by computer but still sent
manually (and often re-entered manually into
another computer). Whilst at the same time the
world of automatic data transmission where data is
sent from computer to computer with minimal
1
1.1.12 Their want to finance and facilitate payment
for customers' trade transactions by means which,
while meeting individual requirements as closely as
possible, will give proper weight to prudent
precautions against loss or misunderstanding. In this
they need the prompt presentation of documents
which comply with the terms of the instructions
they have received. Any variation in the documents,
particularly when payment is made in the
framework of a Documentary Credit, will result in
delays for correction or verification.
1.1.8 Owing to the complexity of some of the
procedures, efficiency is lost if steps are not taken
to minimize the amount of information required, for
instance whilst goods are in transit. More generally,
procedural requirements should be re-examined and
manual systems tidied up before information
technology can, with safety and economic
advantage, be systematically applied.
1.1.9 In theory, there should be nothing
inherently too complicated in the systems and
procedures for selling goods from one country to
another. Apart from the official requirements caused
by the protection of national interests, difficulties
arise in part from the sheer scale of the operations
and in part from the vast number of people,
interests, nations and languages involved. What
may appear as a facilitation solution in one part of
this network can, and often does, create difficulties
in another. To take one example, Preshipment
Inspection (PSI), which may be appropriate to solve
a specific problem in the importing country, can
sometimes impede the exporter, and the latter
incorporates the costs incurred into the selling price.
The resulting costs of PSI are finally bome by the
final consumer of the goods in the importing
country. (See recommendations to discourage the
practice of PSI).
1.1.13 However reasonable and economically
justified such needs can be, it is by no means
uncommon for the requirements of one commercial
business or trade to conflict with those of another.
Individual needs and incompatibilities must be
identified before they can be reconciled. Moreover,
the needs should be reconciled before they can be
attended. The best people to explain their needs will
always be the commercial interests themselves, but
this requires that they have ample means of
expressing their views through a variety of
organizations and National Trade Facilitation
Bodies, as recommended by UN/CEFACT (United
Nations Centre for Trade Facilitation and Electronic
Business) (UN/CEFACT Recommendation No. 4).
1.1.14 As mentioned above, the requirements of
both Governments and commercial operators to
monitor and control the movement of goods and
payment thereof drive the procedures and
paperwork generated in international trade. Whilst
the ultimate destination of the information may be
divided between the official and commercial
sectors, during the transaction the data required by
both sectors remain closely and inextricably linked.
Commercial requirements are devised by the trading
parties to meet their own needs and are therefore
malleable and easily adaptable to comply with
changing trade practices. By contrast, official
requirements are enforced and controlled by
Governments and have diverse aims, such as fiscal,
protective, trade control and health requirements.
The facilitation of trade may not be the primary
purpose, so the possibility of change can be limited
or, at best, very slow.
1.1.10 Buyers and sellers want to see their
agreement for the sale and purchase of goods
accomplished with the minimum of complication
and cost against the background of their total
production control and marketing arrangements.
The sellers wants sure payment and a safe timely
arrival of their goods so that a single transaction is
not only satisfactory to both parties but also
contributes to the possibility of future business. The
buyers want to receive the goods they have agreed
to buy at the place and time provided in their
contracts in good condition and with no more
formalities or exertion on their part than are
reasonably necessary to obtain possession and make
payment.
1.1.11 Carriers and other parties involved in the
transport chain such as terminals and forwarders
want to be able to receive and deliver the goods on
behalf of their clients with the minimum of
complication. They also seek to fulfil this function
in ways and under conditions conforming as closely
as possible to their own requirements for the
effective operation of their transport and handling
resources.
1.1.15 Those asking for and those providing
information each have certain responsibilities. The
essence of the technical task is to move minimum
information with maximum efficiency. The criterion
should be the minimum information necessary to
service the transaction and not the minimum that
people would like to obtain for other purposes. This
2
avail themselves of this facility. They should be
made aware of the benefits they could derive from
using aligned documents, the more so if internal
company requirements are also linked to the aligned
system.
puts a special responsibility on those interests,
especially Governments, banks and other credit
institutions, which are in a position to enforce their
data requirements.
1.1.16 Regardless of the end use of the data, the
timely arrival of information, certainly before the
arrival of the goods, is a vital component in any
international trade transaction. As world distances
"shrink" and travel times are reduced, it is essential
that information is transmitted using the quickest,
most effective method available to the parties
involved. If it arrives after the cargo, the best
information in the world will still cause acute
problems, especially in the port community. Whilst
it is appreciated that the technology available in
different parts of the world may differ, where
possible the use of modem technology should be
encouraged, and suitable conditions for such use
(including the necessary legal or regulatory
framework) should be established in the countries
concerned.
1.2
1.2.5 The basic system is very simple and can
operate without modem technology. By putting the
details of the transaction or shipment on a master
document, the aligned forms can be prepared by
what is known as the "one-run" system. Items of
information which are not required on individual
forms for a particular procedure can be omitted by
the use techniques which blank out the data on the
reproduced document.
1.2.6 Information can be added to the master
document at any time during the preparation and
printing of individual forms. These systems reduce
the cost and time taken to prepare documents and,
once the master has been checked, ensure that the
information on all forms is accurate.
1.2.7 Software packages are also available for
extracting the required information from internal
databases and producing aligned documents using
microcomputers. This enables the companies either
to produce masters which are used for reproducing
the required forms, to print information on pre
printed forms, or to produce completed forms from
plain paper by using a laser printer.
Documentary Requirements
1.2.1 One of the arguments commonly put
forward against the paperwork and procedures in
international trade is that they may give rise to
avoidable costs, e.g. those concerning duplication
and reproduction of data, a problem which is greatly
accentuated when a transaction is not perfectly
executed.
1.2.8 In considering reforms in documentation
and procedures, commercial interests will be much
influenced by likely effective reductions in the
overall cost of financing, handling and moving
goods from exporter to importer, seller to buyer. It
should be realised in this respect that the direct costs
of documents and procedures are only one part of
the story. Indirect costs, such as fines, demurrage
and loss of business because of inadequate
documentation, which can be far more significant,
are difficult if not impossible to cost in advance or
quantify. Documentation and procedural costs in a
particular transaction may be minimal yet any one
of the many minor errors, which are endemic
throughout present systems, may result, for
example, in demurrage costs of thousands of
dollars.
1.2.2 Costs in this crude sense may be an
ambiguous and even misleading index. Effective
overall control systems might be established which,
while showing substantial advantages at the
management
centre,
could
impose
extra
complications and costs on shipping and movement
control functions taken in isolation.
1.2.3 Given the large volumes of information are
required in international trade, which can result in
abundance of paper documents, there are attractions
in any method, which can simplify the production of
the numbers and copies of documents. Many of the
difficulties associated with information flows can be
eliminated by the use of "aligned documents" i.e.
documents printed on the same size paper and with
common items of information set out in the same
relative position on each form.
1.2.9 In this context, those asking for
information, e.g. Customs, carriers, etc. should ask
for the minimum of information at the best time
and, if asking others to complete their documents
(e.g. goods declarations), provide these in a
1.2.4 Although the range of documents aligned to
a common standard, the United Nations Layout Key
is now fairly extensive, many companies still do not
3
disadvantages of paper documents and brings
substantial benefits and savings to companies that
implement it. Accuracy (data are received directly
from computer files and are not re-entered
manually), speed and savings (it saves on the cost of
mailing, copying, filing, distributing and capturing
data) are some of the advantages.
standard format. Those providing information have
a responsibility to provide accurate data at the right
time on the agreed format. When these conditions
are fulfilled, each party - both the provider and
receiver of information - can operate efficient
documentation systems and carry out their own
procedures in the minimum time.
1.3
Electronic Business
1.3.4 EDI cannot function without standards.
Various EDI standards have been developed to meet
sectorial and national requirements for a speedy and
successful implementation within closed groups, but
implementation across national and sectorial
boundaries is difficult as partners have to be able to
support, maintain and interpret several EDI
standards at great expense and inconvenience. To
remedy this, for more than ten years UN/ CEFACT
and its predecessor UNECE’s WP.4 have been
developing essential standards covering data
elements, codes, segments and syntax rules for EDI.
UN/EDIFACT, the result of this development,
provides the world market with the necessary
ingredients for using complete standard message
types (UNSMs) for business data interchange.
These standards, together with other UN/CEFACT
recommendations, represent the business knowledge
necessary to exchange data in whatever format
through the Internet, VANS or other means.
Electronic business uses these building blocks to
ensure that the right information is available at the
right time.
1.3.1 Electronic business should be seen as the
process of transacting business electronically. This
includes the sharing of unstructured or structured
business information by any electronic means
among suppliers, customers, governmental bodies,
service providers and other parties in order to
conduct and execute transactions in business,
administrative and other activities. It is a
development of the most rapid advancing
technology in present times, namely Information
and Communication Technology (ICT). Use of this
technology has made it possible to use Electronic
Data Interchange together with Internet solutions
for data to be exchanged between business
applications with minimal human intervention. ICT
revolutionizes
business
communications
by
removing a complete layer in business practices the
use and processing of paper documents. The
rationalization of data flows within a company
enhances the integration of business functions and
hence facilitates the decision making process. EDI
opens up potent strategies such as "just in time"
manufacturing. In addition, it enables companies to
forge closer and more effective links with their
trading partners.
1.3.5 It is obvious that replacing paper documents
by electronic information does not change the basic
trade requirements between partners in international
trade transactions. The same fundamental functions
should be fulfilled, and the partners will still be,
through for instance EDI, sending and receiving a
purchase order, or declaring goods to Customs, or
reserving space with a carrier and arranging
payments. However, the implementation of
Electronic Business solutions will lead to different
processes and further simplification.
1.3.2 EDI stands for the transfer of structured
data, by agreed standards from computer application
to computer application through electronic means.
EDI is not a new concept or a new practice. Various
industries, Governments and financial institutes use
it to exchange high volume and changing
information such as purchase orders, container
stowage information and financial data.
1.3.3 Paperless trading is growing fast in many
countries, in particular because "just in time" stock
control usually means more, smaller shipments with
very tight delivery schedules that paper documents
cannot cope with, and also because EDI is a natural
evolution in the international trade cycle. Indeed,
one of the principal reasons for using EDI is the
mountain of paper documents produced, moved,
handled, corrected, transcribed and copied in
normal business transactions. EDI has none of the
1.3.6 For international information flows used in
Trade and Transport, the electronic transfer of data
will permit substantial procedural rationalization,
and a more efficient trade / transport, as is already
the case e.g. in the framework of community
systems largely based on the use of information
technology including EDI. In some countries, this
may necessitate changes in laws and regulations,
4
information). With increasing cost consciousness, it
is clear that simple and consistent standards should
be applied for physical marking of goods. Such is
the purpose of the recommended practice on the use
of Simpler Shipping Marks (UN/CEFACT
Recommendation No. 15)
e g. for permitting the replacement of traditional
paper documents, Customs declarations, etc. by
electronic messages, or for giving such messages
the same legal value as that of a paper document.
1.4
Cargo/Goods Requirements
1.4.5 Numerous references on documents are
created and received through the exchange of
information through EDI and other electronic
messages. The current referencing systems, while
being purposeful to the generator, mean little or
nothing to a third party who, in turn, generates its
own reference. In an international trade transaction,
up to 30 or more references can be generated, all of
which are usually held in some form of database.
With the development of EDI, it becomes obvious
that these many references are expensive to store, to
transfer and to relate to. Therefore a method had to
be found to harmonize and align these wherever
possible and feasible.
1.4.1
Each participant in international trade needs
to identify consignments, goods and equipment
uniquely Customs need to know precisely which
goods have been declared for examination and
control purposes. Port authorities, terminals, carriers
and their agents need to know exactly which goods
they have authority to deliver from their charge.
Shipping lines need to itemize and account for
goods and equipment, which they carry. Importers
and exporters need to know precisely which of their
goods are in transit and for which to arrange for
carriage and handling payments.
1.4.2 Currently many references are used in ports
and terminals as a single consignment reference,
which has to appear on both the cargo and
associated documentation as identifiers. It is
important that those who handle or examine goods
be able to recognize and separate one consignment
from another. The marks and numbers, together
with the description and the number, of packages
fulfil this requirement.
1.4.6 To that effect, UN/CEFACT developed in
1992 Recommendation No.8, the Unique
Identification Code Methodology (UNIC), which
proposes a method for referencing a transaction or
consignment for the totality of its existence. It can
be generated by either the buyer, the seller or
provider of service and can be used by both official
and commercial organizations. It complies both
with
UN/EDIFACT
and
United
Nations
documentary standards and has the specific function
of becoming the only reference in international and,
potentially,
national
trade.
The
current
Recommendation relies on existing codes and
references issued by commercial coding agencies,
official bodies such as fiscal or statistical
authorities, and trading companies themselves. The
methodology is generic and can be represented as a
barcode with the appropriate symbologies. At
present, the WCO and local Customs are working
towards finding new ways to apply this
Recommendation and where appropriate revise it.
1.4.3 Regardless of the mode of transport, goods
moved internationally by conventional methods still
require physical markings, which are sometimes
also reproduced in related documents and even
transmitted as data in electronic messages. The
purpose of a shipping mark has always been to
identify cargo and help in moving it rapidly,
smoothly and safely, without delays or confusion, to
its final destination and to enable the checking of
cargo against documents. At present, with the fast
advance of the use of containers in transport the link
between the goods and the equipment in which they
are carried is becoming essential to ensure proper
handling and control. The result of not being able to
recognize consignments leads to unnecessary costs,
mistakes, confusion and shipment delays.
1.5
Official Requirements
1.5.1 Many of the documents and procedures
required in international trade have been devised by
commercial interests to meet their own commercial
requirements. Even when considered out of date or
inappropriate for changed circumstances (e.g.
changes in transport methods), they are at least
designed to facilitate trade, whereas government
requirements, and the documentation and
procedures which stem from them, have diverse
1.4.4 References and marks differ widely
between countries and between modes of transport.
With the increasing volume of international trade,
the advent of multimodal and intermodal transport
and the fast increase of the use of containers, there
is a growing need to manage such data (whether in
paper documents or using electronic exchange of
5
aims and the facilitation of trade may not be their
primary purpose. However, in many countries, the
trade may be aware of an almost continuous process
review, in particular by Customs, to meet the
demands of new methods of trade and transport and
to increase the efficiency and effectiveness of
control services. This results in part from a
progressive implementation of the provisions of the
revised Kyoto Convention of the WCO, and also
from the introduction of automated systems like the
UNCTAD ASYCUDA program and other EDI
initiatives, in an increasing number of countries.
1.5.5 Harmonization of Customs data in the area
of product classification has been achieved by the
introduction of the WCO International Convention
on the Harmonized Commodity Description and
Coding System (HS). The HS was created to meet a
vital and pressing need for a single classification
system, which would respond to the basic
commodity description and coding requirements of
the entire international trade community. Countries
using the HS account for over 85% of world trade.
However, one of the basic objectives of the HS,
with its multipurpose features, is to apply the
classification
code
outside
the
Customs
environment, i.e. to ensure its application not only
by Customs and statisticians but also by commercial
interests such as traders, carriers and producers.
This objective is far from being attained, and every
effort should be made to ensure that this genuine
business opportunity
is
not
lost.
(See
recommendations D.7 and N.I6)
1.5.2 Customs agencies tend to be responsible for
the application of a wide variety of measures for
which the basic policies of which are determined by
other government departments. For instance, they
enforce exchange control regulations and import
and export restrictions and prohibitions; they ensure
compliance with certain public health regulations;
they compile trade statistics and collect certain
levies on behalf of other agencies.
1.6
Payment Procedures
1.6.1 Payment is an essential parameter in
international trade. The method of payment and its
efficiency is influenced not only by commercial
practices but also, in some countries, by government
policy.
1.5.3 Willingness by Customs to modify their
requirements in no way relieves exporters of their
obligation to make accurate declarations for
exported goods, and importers of their obligation to
ensure the speedy release of the goods by meeting
the necessary detailed Customs requirements for
information and documents. In many countries now,
Customs are willing to accept telex, faxed, or where
appropriate e-mail information, either in lieu of
packing lists or as temporary substitutes for an
invoice, and will release imported goods
accordingly. Nevertheless, errors by importers
continually hinder the swift clearance of goods.
Analysis of representative samples of import entries
shows that some 20-30 per cent of them are
incorrect in at least one respect. Typical errors are
omission of essential information, incorrect tariff or
statistical classification, and failure to produce
supporting documents. Again, the use of the aligned
system of documents and of EDI should ensure that
such occasions are reduced.
1.6.2 Methods of payment are sometimes not as
efficient as they should be because of exchange
control regulations imposed by the Government in
the country of import, or because traders are not
fully conversant with the implications of certain
methods, or because they wish to overprotect the
payment. These restrictions are generally counter
productive and result in deterring rather than
encouraging trade.
1.6.3 One of the most widely used methods is the
Letter of Credit (L/C). The Documentary Credit
system, which has been in use for over a 150 years,
was introduced to provide payment against proper
presentation of documents. L/Cs are used for
consignments of both very low and very high value,
even though for low value consignments this
method is not always economically justifiable.
1.5.4 These errors can have a considerable effect
on the service Customs are able to provide. For
instance, trader performance is often taken into
consideration by Customs for granting greater
facilities and accelerated procedures. Such facilities
include Customs clearance undertaken at the traders'
premises, based on qualifying criteria of movement
and trader performance, or simpler Customs
documentation linked to audit based controls.
1.6.4 The requirements for a L/C vary
considerably throughout the world, the more
difficult cases being associated with developing
countries. For example, a credit from one of those
countries could well be expected to consist of four
pages of requirements, which must be strictly
adhered to, and are often contradictory.
6
present it would not be economical to use EMTs for
sums of less than USS 10,000 as the cost would
exceed the benefits. This directly affects
international trade efficiency and has particular
implications for the smaller international trader who
relies heavily on cash flow.
1.6.5 Research in the United Kingdom has also
indicated that in over 50% of cases, the documents
which had to be presented to secure settlement were
rejected on first presentation because of defects or
errors which made them unacceptable according to
the terms of credit. Not surprisingly, this was found
to be largely due to reliance on manual processing
and the rewriting or rekeying of information.
1.6.9 An additional cause for possible delays
stems from strict Exchange Control regulations in
some countries, which impose certain payment
methods (like the compulsory use of L/Cs whilst
other more flexible methods such as bills of
exchange or open accounts could be used in many
instances, e.g. when the transaction takes place
between established and trusted partners). In
practice, some of the current official requirements
may be onerous to the trader and tend to impede
trade information flows. They can actively
discourage trade with certain countries where the
requirements are too stringent. It would obviously
be beneficial for these countries to study how their
legitimate objective, i.e. to protect their scarce
resources in hard currencies and, in some instances,
to control the repatriation of export proceeds, could
be attained through methods that would not delay
normal payments between trade partners.
1.6.6 Credit requirements are also affected by
interpretation of language. This is especially evident
where, under the terms of the credit, transshipment
is prohibited. Although defined in the Uniform
Customs and Practice for Documentary Credits
(UCP) of the International Chamber of Commerce
(ICC), the term transshipment is sometimes
interpreted in different ways, and this can result in
the credit being void. Similar difficulties may be
caused by misunderstandings between buyer and
seller. Frequently the buyer will specify a condition,
e.g. "shipped on deck", which may have a particular
interpretation to him whilst to the seller it has a
conflicting meaning. If parties do not agree on the
conditions beforehand, the discrepancy may come
to light at the time of presentation to the bank when
the possibility for amendment is limited. Although
the ICC has produced the above mentioned UCP
(recently revised and issued as "UCP 500", which
we refer on various occasions in this publication),
some countries insist on referring to their standard
banking practice, which is specific to that country
and often not definitive.
1.7
Conclusion
1.7.1 In the same manner as the speed of a
convoy is determined by that of the slowest truck or
ship, or the strength of a chain by that of its weakest
link, trade efficiency cannot be reached if one
operator in the transaction chain does not operate
efficiently. This goes for both private parties and
government agencies controlling the movement of
goods in international trade.
1.6.7 As well as methods of payment, the
methods of remittance of funds are also important.
These methods range from the S.W.I.F.T. Express
Money Transfers (EMTs) to postal cheques or
electronic banking, and delays in the system vary
considerably. It is not untypical for a payment
transfer to take up to 30 days and, in interest costs
alone, it can amount to a considerable sum. From
the buyers’ standpoint remittance times are not
beneficial, as the sums have already been removed
from their accounts. All major banks openly state
that it is not their policy to retard money transfers
nor retain traders' money any longer than absolutely
necessary. Nevertheless, in almost all international
trade transactions where money passes from buyer
to seller, more than one bank is involved in the
money transfer and delays occur which are often
caused by technological flaws or human error.
1.7.2 It is therefore essential that trade procedures
and practices are governed by universally agreed
basic principles and norms that could be applied by
all participants in the transaction, irrespective of
their methods of intervention and the degree of
sophistication of their information management
systems. There is no doubt that the use of electronic
techniques for information transfer, and in particular
EDI, will significantly contribute to a more efficient
trade; however, it should be realized that this
objective will be attained only if the basic
procedures are in order in the exporting as well as
the importing country.
1.6.8 Delays can be reduced by using efficient
and fast remittance systems such as EMTs, but the
cost for using these systems could be prohibitive: At
1.7.3 Tools for devising efficient procedures are
available in the form of standards, recommended
practices, model procedures, etc. The Compendium
7
of countries at various levels of development; they
have proven their efficiency. Many of them are
fundamental for the streamlining of international
trade procedures: their generalized application
would be a formidable step forward towards more
efficient trade tlirough better practices.
of Trade Facilitation Recommendations includes a
comprehensive list of such practical measures.
Although there are no recent indications concerning
the extent to which they are actually implemented in
the individual countries, it is well known that most
of these tools are extensively used in a large number
8
Section II
LIST OF TRADE FACILITA TION RECOMMENDA TIONS
Brief descriptions of the recommendations contained in this Compendium have been grouped under
the following headings:
A.
B.
C.
D.
E.
F.
G.
H.
I.
General provisions to facilitate trade
Provisions relating to official procedures and controls
Provisions relating to transport and transport equipment
Provisions relating to the movement of persons
Provisions relating to the management of dangerous goods and harmful substances
Provisions relating to payment procedures
Provisions relating to the use of Information and Communications Technology (ICT)
Provisions relating to commercial practices and the use of international standards
Legal aspects of trade facilitation
A. General provisions to facilitate trade
lA.
Trade
General bonds to cover Customs, immigration and health obligations
Facilitation of clearance of cargo, passengers, crew and baggage
Establishment of a national focal point for trade facilitation
Limitation on requests for copies of documents
Use of Facilitation Measures related to International Trade Procedures
Preshipment Inspection not a regulatory requirement
Use of Preshipment Inspection as an interim recourse
Use of Preshipment Inspection to carry out Customs related activities
Agreement on Preshipment Inspection
Procedures to be as simple as possible
Agreement on Rules of Origin
Agreement on Technical Barriers to Trade (TBT Agreement)
Agreement on the Application of Sanitary and Phytosanitary
Measures (SPS Agreement)
A.
2
Customs and other regulatory bodies
Co-ordination and harmonization of controls
Information on veterinary inspection requirements
Sanitary certificates and other documents to be simple and standardized
Adequate resources for control services
Coordinated and joint controls between adjacent countries
Information on medicosanitary inspection requirements
Information on phytosanitary inspection requirements
Information on technical standards requirements
Information on quality controls
Coordinate working hours at borders
Publicity for official tariff, information on clearance procedures, etc.
Provision by Customs of information of a specific nature
Customs to give information on duties and taxes, valuation and
procedures
No penalty for inadvertent declaration errors
Designated offices for Customs clearance
Person to make declaration
9
ICAO
IMO
UN/CEFACT, IMO
UN/CEFACT
UN/CEFACT
UN/CEFACT
UN/CEFACT
UN/CEFACT
WTO
WTO
WTO
WTO
WTO
ICAO, UNECE, WCO
ICAO, UNECE
IMO
UNECE
UNECE, WCO
UNECE
UNECE
UNECE
UNECE
UNECE, WCO
WCO
WCO
WCO
WCO
WCO
WCO
B. Provisions relating to official procedures and controls
B.l
Provisions relating to exports
B.1.1 General
Fees charged to be commensurate with work involved
Export procedures to be as simple as possible
Publication of export regulations
Impartial Application of Export Regulations
Preshipment Inspection to be non-discriminatory
Agreement on Technical Barriers to Trade
WTO
WTO
WTO
WTO
WTO
WTO
B.1.2 Customs
Certified Cargo Manifest not to be evidence of arrival abroad
Clearance at any approved Customs office
Whenever possible, no physical export examination
Examination of exports with minimal handling of cargo
Loading up to time of aircraft departure
Waive presentation of individual documents
Evidence of arrival abroad not normally required
Acceptance of goods declarations at inland offices
Periodic export declarations
No export delay for minor information omission
ICAO
ICAO
ICAO
ICAO, WCO
ICAO
ICAO
WCO
WCO
WCO
WCO
B.l.3 Official documents
Simple formalities for goods permits and licences
Alignment of documents with United Nations Layout Key (ISO 6422)
Limitation of documents to simple export declaration
Number of copies of export declaration
ICAO
ICAO
ICAO
WCO
B.2
Provisions relating to imports
B.2.1 General
National legislation to cater for computerized procedures
Fees charged to be commensurate with work involved
Agreement on Import Licensing Procedures
B.2.2 Customs
Airfreight consignments of low value to be exempted from import duties
Acceptance of declaration before arrival of goods
Abolition of consular invoices and fees
Priority examination of live animals, perishables, etc.
Selective examination of goods
Reduce documentary requirements
Simplified Customs documentation for air cargo up to specified value or
weight
Commercial invoice the basic document
Provisional declaration if all data not available
Customs or other official information not to be required on air waybill
Expeditious clearance of goods
Immediate release to importer’s premises
Customs to give information on clearance procedure
Customs to supply information to assist completion of goods declaration
Inward processing use of equivalent domestic goods
10
UN/CEFACT
WTO
WTO
ICAO
ICAO, WCO
ICAO
ICAO, WCO
ICAO
ICAO
ICAO
ICAO
ICAO
ICAO
UN/CEFACT
UN/CEFACT, WCO
WCO
WCO
WCO
Temporary importation of special handling equipment
Limited Customs control of imported goods
General security for goods in temporary store
No security if Customs control temporary store
No duty on goods destroyed in temporary store
Limit for temporary storage
Responsibilities and rights of declarant
Customs to give information on clearance procedure
No separate declaration for samples taken
Periodic home use declarations
Prompt examination of goods
Limited Customs control
Clearance by summary examination whenever possible
Detailed examination by selective methods
Provisional declaration if all data not available
WCO
WCO
WCO
WCO
WCO
WCO
WCO
WCO
WCO
WCO
WCO
WCO
WCO
WCO
WCO
B.
2.3
Official documents
Simple formalities for goods permits and licenses
Alignment of Customs import goods declarations
Number of copies of goods declaration
No unnecessary certification of origin
Acceptance of declaration of origin
Information on origin requirements
Alignment of certificates of origin
ICAO
ICAO, WCO
WCO
WCO
WCO
WCO
WCO
3
B.
Provisions relating to transit
B.3.1 General
Normally no technical standards control
Normally no quality control
Freedom of transit to be allowed
No distinction based on flag, origin, ownership, etc.
No unnecessary delays or restrictions
B.3.2 Customs
Limitation of inspection
Exemption from Customs duties
Flat rate bonds for transit goods
No routine calculation of duty on transit goods
TIR transit regime valid for all modes of transport
Normally no escort of goods
No duty on transit goods accidentally lost or destroyed
No escort of goods in transit or itinerary
Commercial or transport document as descriptive part of transit
declaration
No unnecessary delays or restrictions
B.3.3 Health and Safety
No medicosanitary inspection for goods in transit if no contamination
risk
No veterinary inspection for animal products in transit if no
contamination risk
No phytosanitary inspection for goods in transit if no contamination risk
11
UNECE
UNECE
WTO
WTO
WTO
UNECE
UNECE,WCO
UNECE
UNECE
UNECE
UNECE
WCO
WCO
WCO
WTO
UNECE
UNECE
UNECE
B.3.4 Security
Declarant to choose form of security
General security for several transit operations
On completion, discharge of security without delay
B.4
WCO
WCO
WCO
Measures relating to transshipment of goods
B.4.1 Customs
No duty on transhipped goods
No duty on destroyed transshipment goods
Reduced duty if goods damaged and not exported
Normally no examination of transshipments
Normally no escort of transshipments
WCO
WCO
WCO
WCO
WCO
B.4.2 Security
Declarant to choose form of security
General security for regular transshipments
WCO
WCO
C. Provisions relating to transport and transport equipment
l
C.
Air transport
Minimization of dwell-time of air cargo
No General Declaration for air transport
Use of ICAO standard General Declaration if one required
Agent or pilot may sign declaration
Standard Manifest for air cargo
Nature of goods not to be shown on Standard Manifest
Minimum documentation for aircraft arrival/departure
Arrival/departure documents not required for internal stops, only on
arrival from and departure to abroad
No duty on air transport ground equipment
No duty on air transport training equipment
C.2
Sea transport
Acceptance of standard manifest
Use of Standard Bill of Lading
Single comprehensive security for shipowners
No prior authentication of ship and cargo documents
Minimum formalities at second port call
Grant of practique by radio
Limited documents required on ship’s arrival
Use of General Declaration
Same form of General Declaration for arrival
Information required on General Declaration
Authentication of General Declaration
Use of Cargo Declaration for arrival and departure
Information required on Cargo Declaration
Limited information about cargo remaining on board
Number of copies of documents
Authentication of Cargo Declaration
Manifest in lieu of Cargo Declaration
Separate advice of unmanifested parcels
Acceptance of Bill of Lading as alternative to Cargo Declaration
12
ICAO
ICAO
ICAO
ICAO
ICAO
ICAO
ICAO
ICAO
ICAO
ICAO
ICS
ICS
IMO
IMO
IMO
IMO
IMO
IMO
IMO
IMO
IMO
IMO
IMO
IMO
IMO
IMO, ICAO
IMO
IMO
IMO
No departure Cargo Declaration for cargo remaining on board
Correction of inadvertent errors without delay to ship
Use of model arrival forms
No penalties for inadvertent errors
Issue of single original Bill of Lading
Use of Sea Waybill in preference to Bill of Lading
Simpler Shipping Marks
C.3
Multimodal transport
Use of blank-back forms
Use of codes for modes of transport
Layout Key for Standard Consignment Instructions
Undocumented temporary importation of vehicles or containers
containing goods under TIR
Acceptance of foreign Customs seals on containers
Minimum Customs formalities for means of transport
Temporary importation of means of transport
Duty on destroyed or damaged means of transport
No prior authentication of means of transport documents
Reduced number of copies of declaration of arrival
Use of foreign containers in internal traffic
Acceptance of foreign containers for temporary admission
Temporary admission for replacement parts for containers
Temporary admission for accessories and equipment for containers
Undocumented temporary importation of foreign containers
Acceptance of approved foreign containers
IMO
IMO
IMO
IMO
UN/CEFACT
UN/CEFACT
UN/CEFACT
UN/CEFACT
UN/CEFACT
UN/CEFACT
UNECE
UNECE, WCO
wco
WCO
wco
wco
wco
wco
wco
wco
wco
wco
wco
D. Provisions relating to the movement of persons
No passenger manifest to be required for air transport
Use of Standard Passenger Manifest if one required
ICAO
ICAO
E. Provisions relating to the management of dangerous goods
and harmful substances
Separate advice of dangerous goods
Information relating to dangerous goods
Use of dangerous goods declaration
IMO
UN/CEFACT
UN/CEFACT
F. Provisions relating to payment procedures
Use of abbreviations for PAYTERMS
Duty payment by means other than cash
Deferred duty payments
Proof of duty payment to be issued
Refund of overpayments
UN/CEFACT
WCO
WCO
WCO
WCO
13
G. Provisions relating to the use of Information and
Communications Technology (ICT)
Basic principles for the introduction of EDI
Participation by operators to be optional
Study use of information technology to facilitate airfreight
Encouragement of use of EDI
Customs to provide data interchange with trade users
Acceptance of information technology prepared Cargo Manifest
Electronic data-processing techniques for facilitation of ships clearance
Acceptance of authentication without signature
Use of UN/EDIFACT including use of UN Trade Data Interchange
Directory (TDED) (syntax : 1509735)
National legislation to cater for computerized procedures
Continuos liaison Customs - national information technology services
Customs administrations to exchange information technology
information
Customs to maximize use of information technology techniques
Customs computer systems to use international standards
Review Customs manual procedures before computerizing
Customs to provide data interchange with trade users
Customs to use information technology criteria
Exchange of information technology information between Customs
administrations
Exchange of information technology information between Customs and
other parties
ICAO
ICAO
ICAO
ICAO
ICAO
ICAO
IMO
UN/CEFACT
UNECE
WCO
WCO
WCO
WCO
WCO
WCO
WCO
WCO
WCO
WCO
H. Provisions relating to commercial practices and
the use of international standards
Avoidance of excessive detail in credits
Authenticated teletransmission deemed operative credit/amendment
unless qualified
Despatch of operative credit/amendment without delay after qualified
teletransmission
Bank acceptance of photocopied, carbon copies and information
technology produced documents
Copies do not need to be signed
Acceptance of alternative documents when credit calls for Bill of
Lading
Limited acceptance of transshipment when credit prohibits
Acceptance of alternative documents when credit calls for nonnegotiable waybill
Acceptance of alternative documents when credit calls for charter party
Bill of Lading
Acceptance of alternative documents when credit calls for multimodal
transport document
Acceptance of alternative documents when credit calls for an air
transport document
Acceptance of alternative documents when credit calls for road, rail or
inland waterway transport document
Acceptance of post receipt or certificate of posting (conditions)
Acceptance of courier receipt (conditions)
Limited acceptance of freight forwarder issued transport document
Commercial invoices need not be signed
14
ICC
ICC
ICC
ICC
ICC
ICC
ICC
ICC
ICC
ICC
ICC
ICC
ICC
ICC
ICC
ICC
Acceptance of weight certificate on transport document
Acceptance of goods description in general terms
Use of aligned trade documents
Use of country codes
Use of INCOTERMS abbreviations
Use of Aligned Invoice Layout Key
Use of codes for dates, times, periods of time
Use of a Unique Identification Code (UNIC)
Use of International Currency Codes
Use of codes for the Identification of ships
Official adoption of agreed location codes (UN/LOCODE)
Use of codes for Units of Measure
Use of Packaging Codes
Use of Standard Consignment Instructions
Use of Freight Codes
Use of Trade and Transport Status Codes
Use of the EDI standard
The commercial use of Interchange Agreements for Electronic Data
Interchange
Use of trade data elements internationally (ISO 7372)
Standards and certification systems should not create obstacles to trade
Use of International Standards
ICC
ICC
UN/CEFACT
UN/CEFACT
UN/CEFACT
UN/CEFACT
UN/CEFACT
UN/CEFACT
UN/CEFACT
UN/CEFACT
UN/CEFACT
UN/CEFACT
UN/CEFACT
UN/CEFACT
UN/CEFACT
UN/CEFACT
UN/CEFACT
UN/CEFACT
UNECE
WTO
WTO
I. Legal aspects of trade facilitation
Use of Uniform Rules of conduct for Interchange of Trade Data by
Teletransmission (UNCID)
Electronic Commerce Agreement
15
ICC
UN/CEFACT
Section HI
THE RECOMMENDA TIONS
This Compendium includes references to, and extracts from, international
instruments. The contents of the Compendium should not be considered as a
substitute for use of the full text of these instruments. Reference should always be
made to the full text, which constitutes the only valid source for official use.
A. General provisions to facilitate trade
/1.7
national trade facilitation bodies with balanced
private and public sector participation in order to:
Provide a national focal point for the collection and
dissemination of information on best practices in
international trade facilitation; ...”
Trade
General
bonds
to
cover
Customs,
immigration and health obligations
ICAO, Convention on International Civil Aviation,
Annex 9 (8.1) Recommended Practice. “If a
Contracting State requires bonds of an operator to
cover his liabilities under the Customs,
immigration, public health, animal and plant
quarantine, or similar laws of the State, it should
permit the use of a single comprehensive bond
whenever possible.”
IMO, Conference on Facilitation of Maritime
Travel and Transport, 1965, Resolution III.
“Further to that Resolution, in August 1989, the
International Maritime Organization (IMO) issued
guidelines for the establishment and operation of
national facilitation committees. They recommend
the establishment of a body consisting of the main
interests concerned with facilitation, including
government clearing agencies, such as immigration,
Customs, consular, passport and visa, public health,
agriculture, security and narcotics control; other
governmental agencies including postal services,
tourism and trade departments; port authorities;
shipowners and operators; shipping and freight
forwarders and agents.”
Facilitation
of
clearance
of
cargo,
passengers, crew and baggage
IMO, Convention on Facilitation of International
Maritime Traffic,
1965, Annex B (3.11)
Recommended Practice.
“Public authorities should, with the co-operation of
shipowners and port authorities, take appropriate
measures to the end that satisfactory port traffic
flow arrangements may be provided so that
passengers, crew and baggage can be cleared
rapidly, should provide adequate personnel, and
should ensure that adequate installations are
provided, particular attention being paid to baggage
loading, unloading and conveyance arrangements
(including the use of mechanized systems) and to
points where passenger delays are frequently found
to occur”
Limitation on requests for copies of
documents
UN/CEFACT, Recommendation No. 12, paragraph 7
and 8. “...participants in international trade,
including shipowners, shippers, consignees, banks
and insurers and other parties interested in the
maritime transport of goods and to Governments,
international organisations concerned and national
trade facilitation organs...
Establishment of a national focal point for
trade facilitation
UN/CEFACT, Recommendation No. 4 “... recom
mends that Governments establish and support
(i) regarding the negotiable bill of lading, to:
(a) discourage their unnecessary use;
(b) restrict the number of originals and copies
issued;...”
17
Use of facilitation measures related to
international trade procedures
UN/CEFACT, Recommendation No. 18, "... recom
mends that Governments, administrations and
organisations responsible for the relevant national
regulations and practices related to the movement of
goods in international trade, support international
facilitation work by implementing facilitation
measures described hereafter;
- Governments and Customs administrations
formally adopt the WCO Arusha Declaration
Concerning Integrity in Customs;
- a comprehensive programme of Customs reform
and modernization, with adequate resources, be
combined with the introduction of the PSI
program; and
- maximum use be made of available PSI
information.”
Recommends that international organisations res
ponsible for the relevant international agreements to
include these measures when reviewing existing or
preparing new international instruments;
Agreement on Preshipment Inspection
WTO, The Agreement on Preshipment Inspection
was negotiated with the aim of reducing any non
tariff barriers that could result from the use of
private agents to conduct quantity, quality and price
inspection of imports. The Agreement does not
encourage countries to use PSI, but recognizes that
some developing countries might employ such
private entities on a transitional basis. The PSI
Agreement does not apply directly to PSI entities; it
is rather implemented titrough WTO Members who
use PSI entities such that they ensure through their
contracts that the entities adhere to the provisions
contained in the Agreement. In establishing a set of
provisions for the carrying out of these inspection
activities, the Agreement harmonizes the rules for
the carrying out of preshipment inspection activities
worldwide.
Recommends that participants in international trade
to accept and implement those facilitation measures
described hereafter, which fall within their area of
interest; ...”
Preshipment Inspection not a regulatory
requirement
UN/CEFACT, Recommendation No. 27 “ The UN
Centre for the Facilitation ...
“- being aware that excessive administrative and
official formalities constitute non-tariff barriers
to trade which can cause delays and additional
costs;
- noting that a number of Governments require
inspection prior to the shipment of goods from
the exporting country; and
- recalling
its
earlier
recommendation
discouraging the use of preshipment inspection,
- recommends that preshipment inspection (PSI)
should not be made a regulatory requirement.”
Procedures to be as simple as possible
WTO, General Agreement on Tariffs and Trade,
Article VIII (I) (c). “The Contracting Parties also
recognize the need for minimizing the incidence and
complexity of import and export formalities and for
decreasing and simplifying import and export
documentation requirements.”
Use of Preshipment Inspection as an interim
recourse
UN/CEFACT, Recommendation No. 27, “ Where in
certain circumstances the interim recourse to PSI is
still considered necessary, UN/CEFACT recom
mends that:
- PSI should be considered as a short term measure
and the procedure should be reviewed every
twelve to eighteen months to ensure fulfilment of
objectives;
- a deadline, which should not exceed five years,
should be established for removing regulatory PSI
procedures;
- the WTO Agreement on Preshipment Inspections
should be formally adhered to..
Agreement on Rules of Origin
WTO, The Agreement on Rules of Origin aims at
harmonization of non-preferential rules of origin,
and seeks to ensure that such rules do not
themselves create unnecessary obstacles to trade.
The Agreement sets out a harmonization work
programme for non-preferential rules of origin to be
undertaken in conjunction with the WCO. The
underlying principle is that the originating status of
a good should be either the country where the good
has been wholly obtained or, when more than one
country is concerned in its production, the country
where the last substantial transformation has been
carried out. The harmonization work is currently
ongoing in the WTO. Until the completion of the
harmonization work programme, Members shall
ensure that their rules of origin do not discriminate
between Members; the rules of origin shall be
clearly defined and transparent; they must be
administered in a consistent, uniform, impartial and
Use of Preshipment Inspection to carry out
Customs related activities
UN/CEFACT, Recommendation No. 27 “Where PSI
is used to carry out Customs related activities,
UN/CEFACT recommends that:
18
prevail. The Agreement further ensures national
treatment. Moreover, sanitary and phytosanitary
measures shall not be applied in a manner which
would constitute a disguised restriction on
international trade (Art. 2.3). In addition, there are a
number of more specific provisions related to trade
facilitation, particularly regarding harmonization of
SPS measures, equivalence, recognition of diseasefree areas, transparency, and control, inspection and
approval procedures.
reasonable manner and be based on a positive
standard. Members have to publish their rules of
origin promptly; any administrative action in
relation to the determination of origin shall be
promptly reviewable by judicial, arbitral or
administrative tribunals or procedures independent
of the authority issuing the determination; such
findings can modify or reverse the determination.
Upon request, assessments of origin shall be issued
as soon as possible but no later than 150 days after
such a request is received.
The Agreement encourages the use of international
standards, guidelines and recommendations, thus
enhancing transparency and security. The
Agreement provides that Members shall accept SPS
measures of other Members as equivalent, even if
these measures differ from their own or from those
used by other Members. The onus to demonstrate
equivalence rests with the exporting Member.
Moreover, the Agreement encourages Members to
enter into consultations with the aim of achieving
bilateral and multilateral equivalence agreements
(Art. 4). Members are required to notify any new or
changed sanitary and phytosanitary requirements
which affect trade. They also have to set up Enquiry
Points to respond to requests for any additional
information on new or existing measures, including
on how they apply their food safety and animal and
plant health regulations. Annex C to the Agreement
establishes detailed provisions aiming at rendering
the control, inspection and approval procedures
non-discriminatory and as efficient as possible
taking into account legitimate commercial interests.
Agreement on Technical Barriers to Trade
(TBT Agreement)
WTO, The TBT Agreement recognizes that product
standards, technical regulations and conformity
assessment procedures are essential for the
functioning of modem economies. The WTO does
not develop product standards, nor does it require its
Members to have such standards. Rather, the TBT
Agreement allows Members to develop their own
technical regulations, standards and conformity
assessment procedures for certain legitimate
purposes, such as the protection of human, animal,
plant life or health, of the environment, or for the
prevention of deceptive practices, and seeks to
ensure that no unnecessary obstacles to trade are
constituted. Technical regulations shall not be more
trade restrictive than necessary to fulfil a legitimate
objective. Product regulations shall, where
appropriate, be specified in terms of performance
rather than design or descriptive characteristics.
The Agreement lays down the principle of non
discrimination between Members and encourages
them to use existing international standards in the
development of their national regulations. Members
are to give positive consideration to accepting, as
equivalent, technical regulations of other Members,
even if these regulations differ from their own,
provided they are satisfied that these regulations
adequately fulfil the objectives of their own
regulations. Finally, the Agreement encourages
Members to enter into mutual recognition
agreements for the acceptance of conformity
assessment procedures.
A.2
Customs and other regulatory bodies
Co-ordination and harmonization of controls
ICAO, Convention on International Civil Aviation,
Annex 9 (4.30) Recommended Practice. “Where the
nature of the consignment could attract the attention
of different clearance agencies, e.g. Customs and
veterinary or sanitary controllers, Contracting States
should endeavour to delegate authority for clearance
to customs or one of the agencies, or where not
feasible, take all necessary steps to ensure that
clearance is carried out simultaneously, at one point
and with a minimum of delay.”
Agreement on the Application of Sanitary
and Phytosanitary Measures (SPS Agree
ment)
WTO, The SPS Agreement contains several
provisions, which relate to facilitating the flow of
goods across borders. A fundamental obligation in
this respect is that Members shall ensure that their
sanitary and phytosanitary measures do not
arbitrarily or unjustifiably discriminate between
Members, where identical or similar conditions
UNECE, International Convention on the
Harmonization of Frontier Control of Goods, 1982,
Article 4. “The Contracting Parties shall undertake,
to the extent possible, to organize in a harmonized
manner the intervention of the Customs services and
the other control services.”
WCO, Revised Kyoto Convention, General Annex,
Chapter 3 Transitional Standard 35. “If the goods
19
must be inspected by other competent authorities
and the Customs also schedules an examination, the
Customs shall ensure that the inspections are co
ordinated and, if possible, carried out at the same
time.”
“(c) official instructions to officers for acting in
accordance with international agreements and
arrangements and with current national
provisions.”
Coordinated and joint controls between
adjacent countries
UNECE, International Convention on the
Harmonization of Frontier Control of Goods, 1982,
Article 7. “Whenever a common inland frontier is
crossed, the Contracting Parties concerned shall
take appropriate measures, whenever possible, to
facilitate the passage of goods, and they shall, in
particular:
“(a) endeavour to arrange for the joint control of
goods and documents, through the provision of
shared facilities.”
“(b) endeavour to ensure that the following
correspond:
opening hours of frontier posts;
the control services operating there;
the categories of goods, the modes of
transport and the international Customs
transit procedures accepted or in use there.”
(See also 1973 Kyoto Convention, Annex B.l
Recommended Practice 34.)
Information
on
veterinary
inspection
requirements
ICAO, Convention on International Civil Aviation,
Annex 9 (4.58). "Contracting States which in certain
circumstances require sanitary certificates or related
documents in respect of particular animal and plant
shipments shall publish the details of their
requirements in this connection."
UNECE, International Convention on the
Harmonization of Frontier Control of Goods, 1982,
Annex 3, Article 3. "Each Contracting Party shall
ensure that information on the following is readily
available to any person interested:
The goods subject to veterinary inspection;
The places where the goods may be presented for
inspection;
WCO, Revised Kyoto Convention, General Annex, Chapter 3
Standaid 3, Transitional Standcud 4 and 5
“3.3. Where Customs offices are located at a com
mon border crossing, the Customs administrations
concerned shall correlate the business hours and the
competence of those offices.”
The compulsorily notifiable diseases;
The requirements as set out in laws and
regulations concerning veterinary inspection as
well as their procedures of general application.”
“3.4. At common border crossings, the Customs
administrations concerned shall, whenever possible,
operate joint controls.”
Sanitary certificates and other documents to
be simple and standardized
IMO, Convention on Facilitation of International
Maritime Traffic, 1965, Annex B (5.3) Recom
mended Practice. “Where Sanitary Certificates or
similar documents are required in respect of
shipments of certain animals, plants or products
thereof, such certificates and documents should be
simple and widely publicized and Contracting
Governments should co-operate with a view to stan
dardizing such requirements.”
“3.5. Where the Customs intend to establish a new
Customs office or to convert an existing one at a
common border crossing, they shall, wherever
possible, co-operate with the neighbouring Customs
to establish a juxtaposed Customs office to facilitate
joint controls.”
Information on medicosanitary inspection
requirements
UNECE, International Convention on the Harmon
ization of Frontier Control of Goods, 1982, Annex
2, Article 2. "Each Contracting Party shall ensure
that information on the following is readily
available to any person interested:
The goods subject to medico-sanitary inspection;
The places where the goods in question may be
presented for inspection;
The requirements as set out in laws and
regulations
concerning
medico-sanitary
inspection as well as their procedures of general
application."
Adequate resources for control services
UNECE, International Convention on the
Harmonization of Frontier Control of Goods, 1982,
Article 5. “To ensure that the control services
operate satisfactorily, the Contracting Parties shall
see to it that, as far as possible, and within the
framework of national law, they are provided with:
“(a) qualified personnel in sufficient numbers
consistent with traffic requirements;
“(b) equipment and facilities suitable for inspection,
taking into account the mode of transport, the
goods to be checked and traffic requirements;
20
Revised Kyoto Convention, General Annex, Chapter
3 Standard 3. “Where Customs offices are located
at a common border crossing, the Customs
administrations concerned shall correlate the
business hours and the competence of those
offices.”
Information on phytosanitary inspection
requirements
UNECE, International Convention on the
Harmonization of Frontier Control of Goods, 1982,
Annex 4, Article 3. "Each Contracting Party shall
ensure that information on the following is readily
available to any person interested:
The goods subject to special phytosanitary
conditions;
The places where particular plants and plant
products may be presented for inspection;
The list of pests of plants and plant products for
which prohibitions and restrictions are in force;
The list of requirements as set out in laws and
regulations concerning phytosanitary inspection
as well as their procedures of general
application."
(See also 1973 Kyoto Convention, Annex B.l
Recommended Practice 4.)
Publicity for official tariff, information on
clearance procedures, etc.
WCO, Revised Kyoto Convention, General Annex,
Chapter 9, Standard I. “The Customs shall ensure
that all relevant information of general application
pertaining to Customs law is readily available to
any interested person.”
WCO, Revised Kyoto Convention, Guidelines to the
General Annex, Chapter 9, Part 2 on Information of
general application. “The information is usually
made available:
- in publications such as the Customs tariff, official
gazettes, bulletins and public notices;
- at appropriate Customs offices;
- at strategic locations where it is likely to be
needed. For example, information on Customs
formalities and exemptions from duty and tax
allowed to travellers may be made available on
ships, aircraft, international trains, or at places of
international arrival and departure;
- in embassies and trade missions abroad, with
supplies of notices for intending exporters and
visitors in a variety of languages if necessary;
- by display in public offices such as major post
offices, tourist centres, etc.;
- by publication in relevant newspapers and journals
or by the issue of press releases; and
- through regular magazine-type publications or
newsletters produced by administrations for the
trade to provide news and articles on major
developments and changes.”
(See also 1973 Kyoto Convention, Annex G.l
Standard 3 and Note.)
Information
on
technical
standards
requirements
UNECE, International Convention on the
Harmonization of Frontier Control of Goods, 1982,
Annex 5, Article 2. "Each Contracting Party shall
ensure that information on the following is readily
available to any person interested:
The standards applied by it;
The places where the goods may be presented for
inspection;
The requirements as set out in laws and
regulations concerning the control of compliance
with technical standards as well as their
procedures of general application."
Information on quality controls
UNECE, International Convention on the
Harmonization of Frontier Control of Goods, 1982,
Annex 6, Article 2. "Each Contracting Party shall
ensure that information on the following is readily
available to any person interested:
The places where the goods may be presented for
inspection;
The requirements as set out in laws and regul
ations concerning quality control as well as their
procedures of general application."
WCO, Revised Kyoto Convention, General Annex,
Chapter 9 Standard 2. “When information that has
been made available must be amended due to
changes
in
Customs
law,
administrative
arrangements or requirements, the Customs shall
make the revised information readily available
sufficiently in advance of the entry into force of the
changes to enable interested persons to take account
of them, unless advance notice is precluded.”
(See also 1973 Kyoto Convention, Annex G.l
Recommended Practice 4.)
Coordinate working hours at borders
UNECE, International Convention on the
Harmonization of Frontier Control of Goods, 1982,
Annex 3, Article 4 (1) "The Contracting Parties shall
endeavour ... to facilitate the movement of goods, in
particular through the co-ordination of working
hours of the veterinary and Customs services and
agreement to effect clearance outside normal hours,
where their arrival has been notified in advance."
21
WCO, Recommendation of the Customs Co
operation Council concerning the use of World
Wide Web sites by Customs Administrations
duties and taxes such as processing, temporary
admission, warehousing or drawback;
- repayment arrangements;
- procedural and administrative arrangements, such
as Customs approved routes, opening hours of
Customs offices;
- security and acceptable methods for providing
security for duty and taxes; and
- documentation requirements.”
“ RECOMMENDS that Members of the Council
and members of the United Nations Organization or
its specialized agencies, and Customs or Economic
Unions, should implement a Customs World Wide
Web site for their administration,
FURTHER RECOMMENDS that Members of the
Council and members of the United Nations
Organization or its specialized agencies, and
Customs or Economic Unions, should make
available on Customs administration web, sites,
where practical or feasible, the data content as
specified in the Annex to this Recommendation.”
(See also 1973 Kyoto Convention, Annex G.l
Standards 10, 13, 14, 15 and 16.)
No penalty for inadvertent declaration
errors
WCO, Revised Kyoto Convention, General Annex,
Chapter 3 Standard 39. “The Customs shall not
impose substantial penalties for errors where they
are satisfied that such errors are inadvertent and that
there has been no fraudulent intent or gross
negligence. Where they consider it necessary to
discourage a repetition of such errors, a penalty may
be imposed but shall be no greater than is necessary
for this purpose.”
(See also 1973 Kyoto Convention, Annex B.l
Standard 43.)
Provision by Customs of information of a
specific nature
WCO, Revised Kyoto Convention, General Annex,
Chapter 9 Standard 4. “At the request of the
interested person, the Customs shall provide, as
quickly and as accurately as possible, information
relating to the specific matters raised by the
interested person and pertaining to Customs law.”
(See also 1973 Kyoto Convention, Annex G.l
Standard 5.)
Designated offices for Customs clearance
WCO, Revised Kyoto Convention, General Annex,
Chapter 3 Standard 1. “The Customs shall
designate the Customs offices at which goods may
be produced or cleared. In determining the
competence and location of these offices and their
hours of business, the factors to be taken into
account shall include in particular the requirements
of the trade.”
(See also 1973 Kyoto Convention, Annex A.l
Standard 13.)
WCO, Revised Kyoto Convention, General Annex,
Chapter 9, Standard 5. “The Customs shall supply
not only the information specifically requested but
also any other pertinent information which they
consider the interested person should be made
aware of.”
(See also 1973 Kyoto Convention, Annex G.l
Recommended Practice 6.)
Customs to give information on duties and
taxes, valuation and procedures
Revised Kyoto Convention, Guidelines to the
General Annex, Chapter 9, Part 3.1. on Types of
information and decisions. “The following are
typical subjects on which Customs may be asked to
supply specific information:
- tariff classification of goods and rates of duties
and taxes applicable to them;
- rules of origin and information necessary for their
interpretation;
- exemption or relief from duties and taxes;
- valuation - general principles and practices for the
calculation of value for Customs purposes and
specific information showing how the value for
goods has been calculated;
- eligibility for treatment under specific Customs
procedures, particularly those offering relief from
Person to make declaration
WCO, Revised Kyoto Convention, General Annex,
Chapter 3 Standard 7. "Any person having the right
to dispose of the goods shall be entitled to act as
declarant.”
WCO, Revised Kyoto Convention, Guidelines to the
General Annex, Chapter 3, Part 2.2. on who can be
a declarant. “Customs normally allow any person
who can provide the necessary documentation to
clear the goods to function as a declarant. However,
where there may be any doubt Customs may require
a declarant to justify that he has the right to dispose
of the goods.”
(See also 1973 Kyoto Convention, Annex B.l
Recommended Practice 6 and Note.)
22
B.
Provisions relating to official procedures and controls
B.l
Provisions relating to exports
B.1.1
General
provisions of this paragraph shall not require any
contracting party to disclose confidential
information which would impede law enforcement
or otherwise be contrary to the public interest or
would prejudice the legitimate commercial interests
of particular enterprises, public or private.”
Fees charged to be commensurate with work
involved
WTO, General Agreement on Tariffs and Trade
1947, Article VIII (l)(a). “All fees and charges of
whatever character (other than import and export
duties and other than taxes within the purview of
Article III) imposed by contracting parties on or in
connection with importation or exportation shall be
limited in amount to the approximate cost of
services rendered and shall not represent an indirect
protection to domestic products or a taxation of
imports or exports for fiscal purposes.”
Impartial Application of Export Regulations
WTO, General Agreement on Tariffs and Trade
1947, Article X (3) (a): “ Each contracting party
shall administer in a uniform, impartial and
reasonable manner all its laws, regulations,
decisions and rulings of the kind described in
paragraph 1 of this Article.”
Preshipment
Inspection
to
be
nondiscriminatory
WTO Preshipment Inspection Agreement includes
numerous provisions that are particularly aimed at
strengthening the rights of exporters vis-a-vis PSI
agencies:
Export procedures to be as simple as
possible
WTO, General Agreement on Tariffs and Trade
1947, Article VIII (l)(c): “ The contracting parties
also recognize the need for minimizing the
incidence and complexity of import and export
formalities and for decreasing and simplifying
import and export documentation requirements.”
Article 2 of the Agreement obliges user Members
(i.e WTO Members who are contracting PSI
agencies to verily exports from other countries) to
ensure that preshipment inspection activities are
carried out in a non-discriminatory manner among
exporters; that the information required from
exporters is set out in a transparent manner; that
unreasonable delays are avoided and within five
working days, a Clean Report of Findings shall be
issued or a detailed written explanation provided,
specifying the reasons for non-issuance.
Publication of export regulations
WTO, General Agreement on Tariffs and Trade
1947, Article X (I): “l.laws, regulations, judicial
decisions and administrative rulings of general
application, made effective by any contracting
party, pertaining to the classification or the
valuation of products for customs purposes, or to
rates of duty, taxes or other charges, or to
requirements, restrictions or prohibitions on imports
or exports or on the transfer of payments therefor,
or affecting their sale, distribution, transportation,
insurance, warehousing inspection, exhibition,
processing, mixing or other use, shall be published
promptly in such a manner as to enable
Governments and traders to become acquainted
with them. Agreements affecting international trade
policy which are in force between the government
or a governmental agency of any contracting party
and the government or governmental agency of any
other contracting party shall also be published. The
Agreement on Technical Barriers to Trade
WTO, Particularly with regard to exports from
developing countries, Article 12.3 of the Agreement
stipulates that that “Members shall, in the
preparation and application of technical regulations,
standards and conformity assessment procedures,
take account of the special development, financial
and trade needs of developing country Members,
with a view to ensuring that such technical
regulations, standards and conformity assessment
procedures do not create unnecessary obstacles to
exports from developing country Members.”
23
in consultation with, inter alia, operators and airport
administrations, devise physical means for carrying
out the inspection rapidly and without necessitating
a separate ground handling of the bulk of the goods
for purposes of examination."
B.1.2 Customs
Certified Cargo Manifest not to be evidence
of arrival abroad
ICAO, Convention on International Civil Aviation,
Annex 9 (4.18). "Where goods are exported from a
Contracting State, free of taxes or duties which
would be payable in the absence of exportation, and
that State requires evidence of the arrival abroad of
such goods, it shall accept as such evidence a
statement supplied by the shipper or consignee and
certified by the Customs authorities in the State of
destination. In any event, the Contracting State shall
not require a certified Cargo Manifest as such
evidence of arrival at destination."
WCO. Revised Kyoto Convention, General Annex,
Chapter 6 Standard 2. “Customs control shall be
limited to that necessary to ensure compliance with
the Customs law.”
(See also 1973 Kyoto Convention, Annex C.l
Standard 15.)
Loading up to time of aircraft departure
ICAO, Convention on International Civil Aviation,
Annex 9(4.13) - "Contracting States shall make
arrangements consistent with aviation security, as
well as those appropriate for narcotics control,
which permit operators to select and load cargo,
including unaccompanied baggage, and stores on
outbound aircraft up to the time of departure."
Clearance at any approved Customs office
ICAO, Convention on International Civil Aviation,
Annex 9 (4.17). "Contracting States shall permit
cargo, including unaccompanied baggage which is
to be exported by air, to be presented for clearance
purposes at any approved Customs office. Transfer
from the first office to the air Customs office of the
airport where the cargo, including unaccompanied
baggage, is to be laden on the aircraft, shall be
effected in accordance with the procedure laid down
in the laws and regulations of the State concerned.
Such procedure shall be as simple as possible,
making due allowance for aviation security
requirements, and any appropriate narcotics control
measures."
Waive presentation of individual documents
ICAO, Convention on International Civil Aviation,
Annex 9(4.11) Recommended Practice. "Contracting
States should waive, as far as possible, presentation
of individual documents pertaining to shipments of
cargo including unaccompanied baggage to be
exported by air."
Evidence of arrival abroad not normally
required
WCO, Revised Kyoto Convention, Specific Annex C,
Chapter 1 Standard 3. “The Customs shall not
require evidence of the arrival of the goods abroad
as a matter of course.”
Whenever possible, no physical export
examination
ICAO, Convention on International Civil Aviation,
Annex 9 (4.15). "Except for reasons of aviation
security, Contracting States shall not normally
require physical examination of cargo, including
unaccompanied baggage, to be exported by air.
WCO, Revised Kyoto Convention, Guidelines to
Specific Annex C, Chapter 1, Part 4. on Formalities
to be completed under the normal procedure.
“When evidence not otherwise available must be
furnished, Customs in the country of export would
normally accept a statement supplied by the
consignee who received the goods and certified by
Customs in the country of destination.”
"Note: - This provision is not intended to prevent
authorities from examining goods exported under
certain conditions, e.g. under bond, licence or
drawback, nor is it intended to preclude other
essential examinations, including any appropriate
narcotics control measures."
(See also 1973 Kyoto Convention, Annex C.l
Standard 21 and Note.)
Examination of exports with minimal
handling of cargo
ICAO, Convention on International Civil Aviation,
Annex 9 (4.17). "In Contracting States where
physical examination of export cargo cannot be
waived completely, such examination shall be
accomplished by applying the sampling or selective
technique in a most liberal manner. The appropriate
public authorities of the State concerned shall also,
Acceptance of goods declarations at inland
offices
WCO, Revised Kyoto Convention, General Annex,
Chapter 3 Standard 1. “The Customs shall
designate the Customs offices at which goods may
be produced or cleared. In determining the
competence and location of these offices and their
hours of business, the factors to be taken into
24
WCO, Revised Kyoto Convention, General Annex,
Chapter 3 Standard 41. “If the Customs are
satisfied that the declarant will subsequently
accomplish all the formalities in respect of
clearance they shall release the goods, provided that
the declarant produces a commercial or official
document giving the main particulars of the
consignment concerned and acceptable to the
Customs, and that security, where required, has
been furnished to ensure collection of any
applicable duties and taxes.”
account shall include in particular the requirements
of the trade.”
(See also 1973 Kyoto Convention, Annex C.l
Standard 4.)
Periodic export declarations
WCO, Revised Kyoto Convention, General Annex,
Chapter 3 Transitional Standard 32.
“For authorized persons who meet criteria specified
by the Customs, including having an appropriate
record of compliance with Customs requirements
and a satisfactory system for managing their
commercial records, the Customs shall provide for :
- release of the goods on the provision of the
minimum information necessary to identify the
goods and permit the subsequent completion of
the final Goods declaration;
- clearance of the goods at the declarant's premises
or another place authorized by the Customs;
and, in addition, to the extent possible, other
special procedures such as:
- allowing a single Goods declaration for all imports
or exports in a given period where goods are
imported or exported frequently by the same
person;
- use of the authorized persons’ commercial records
to self-assess their duty and tax liability and,
where appropriate, to ensure compliance with
other Customs requirements;
- allowing the lodgement of the Goods declaration
by means of an entry in the records of the
authorized person to be supported subsequently by
a supplementary Goods declaration.”
(See also 1973 Kyoto Convention, Annex C.l
Recommended Practice 20.)
B.1.3 Official documents
Simple formalities for goods permits and
licences
ICAO, Convention on International Civil Aviation,
Annex 9 (4.14). “A Contracting State which
continues to require export licences or permits for
certain types of goods shall establish simple
procedures whereby such licences or permits can be
obtained or renewed rapidly.”
Alignment of documents with United Nations
Layout Key (ISO 6422)
ICAO, Convention on International Civil Aviation,
Annex 9 (4.11.1) Recommended Practice.
"Contracting States, in giving effect to 4.11, should
encourage to the maximum extent practicable,
alignment of documents required for the clearance
of export cargo with the United Nations Layout Key
for Trade Documents, to follow the format set forth
in Appendix 10- United Nations Layout Key for
Trade Documents."
(See also Revised Kyoto Convention, Guidelines to
the General Annex, Chapter 3, Part 7.3.1. on
Periodic Goods declaration.)
(See also 1973 Kyoto Convention, Annex C.l
Standard 14 and Note.)
Limitation of documents to simple export
declaration
ICAO, Convention on International Civil Aviation,
Annex 9 (4.12). "A Contracting State which
continues to require such documents for export
clearance shall, for as many types of goods as
possible, limit its requirements to a simple export
declaration."
No export delay for minor information
omission
WCO, Revised Kyoto Convention, General Annex,
Chapter 3 Standard 40. “Goods declared shall be
released as soon as the Customs have examined
them or decided not to examine them, provided that:
- no offence has been found;
- the import or export licence or any other
documents required have been acquired;
- all permits relating to the procedure concerned
have been acquired; and
- any duties and taxes have been paid or that
appropriate action has been taken to ensure their
collection.”
Number of copies of export declaration
WCO, Revised Kyoto Convention, General Annex,
Chapter 3 Standard 15. “The Customs shall require
the lodgement of the original Goods declaration and
only the minimum number of copies necessary.”
(See also 1973 Kyoto Convention, Annex C.l
Recommended Practice 12.)
25
B.2
Provisions relating to imports
Licensing. The Agreement requires prior
publication of rules and all information concerning
procedures for the submission of applications for
licences, including the eligibility of persons, firms
or institutions to make such applications, the
administrative bodies to be approached, and the list
of products subject to the licensing requirement, in
such a manner as to enable Governments and
traders to become acquainted with them. The
Agreement further requires application forms for
import licences and renewal forms to be as simple
as possible. Foreign exchange is to be made
available for licensed imports on the same basis as
for goods not requiring import licences
(Article 1.9).
B.2.1 General
National
legislation
to
cater
for
computerized procedures
UN/CEFACT, Recommendation No. 13. “... Being
aware that the main concern of import authorities is
the completeness and correctness of the information
submitted rather than the form in which it is
presented, and that problems often centre on the
requirement of satisfactory supporting information;
Recommends to Governments to study and
evaluate the possibility of accepting data
transmitted by electronic or other automatic
techniques under specific criteria.”
WTO, Agreement on the implementation of Article
VII of the General Agreement on Tariffs and Trade
1994 (Customs valuation)
Article VII lays down the main principles governing
the valuation of imports for assessment of duties or
other charges (not including internal taxes). It
establishes that this assessment should be based on
the "actual value of the imported merchandise, or of
like merchandise, and should not be based on the
value of merchandise of national origin or on
arbitrary or fictitious values".
Fees charged to be commensurate with work
involved
WTO, General Agreement on Tariffs and Trade,
Article VIII (I)(a). “All fees and charges of
whatever character (other than import and export
duties and other than taxes within the purview of
Article III) imposed by contracting parties on or in
connection with importation or exportation shall be
limited in amount to the approximate cost of
services rendered and shall not represent an indirect
protection to domestic products or a taxation of
imports or exports for fiscal purposes.”
Interpretation and application of this Article has
been more clearly specified in the Tokyo Round and
Uruguay Round Agreements on Implementation of
Article VII of GATT 1994" (Agreement on
Customs Valuation) which establishes the rules for
valuing imports for the assessment of ad valorem
customs duties. As most countries today assess
duties on the basis of an ad valorem system, the
method in which customs authorities value imported
goods is of paramount importance. Harmonization
of the methodology used by countries for valuing
imports creates predictability and transparency for
exporters and importers transacting in the
international marketplace. The Agreement stipulates
that the price for customs purposes shall be the
transaction value, that is the "price actually paid or
payable for the goods when sold for export to the
country of importation adjusted in accordance with
the provisions of [the Agreement]". The Agreement
provides for the establishment of an adequate legal
and judicial framework, which would ensure the
right of appeal for importers. In addition, the
Agreement stipulates that customs authorities must
release goods to importers with the posting of a
guarantee or surety, in cases where further
investigation is required.
Agreement on Import Licensing Procedures
WTO, The Agreement on Import Licensing
Procedures deals specifically with some of the
procedural aspects of Article VIII. It recognizes that
import-licensing procedures can have acceptable
uses, but also that complex formalities may impede
the flow of international trade. It establishes
disciplines on the users of import licensing systems
to ensure that the procedures applied for granting
both "automatic" (where a license is granted in all
cases, used normally to establish trade statistics)
and "non-automatic" import licences (which usually
serve to administer quantitative or other restrictions
on imports) do not in themselves restrict or distort
trade. WTO Members commit themselves to
simplifying and bringing transparency to their
import licensing procedures and to administering
them in a neutral and non-discriminatory manner.
The Agreement sets up time limits for the
publication of information concerning licensing
procedures, for processing of licence applications,
and for notification to the Committee on Import
26
WCO, Revised Kyoto Convention, General Annex,
Chapter 3 Standard 34 “When scheduling
examinations, priority shall be given to the
examination of live animals and perishable goods
and to other goods which the Customs accept are
urgently required.”
B.2.2 Customs
Airfreight consignments of low value to be
exempted from import duties
ICAO, Convention on International Civil Aviation,
Annex 9 (4.25) Recommended Practice “Each
Contracting State should arrange for imported
airfreight consignments, including documents,
private gift packages and trade samples, not
exceeding a certain value or weight, specified by
that State, to be exempted as far as possible from
import duties and other taxes and charges, and
either exempted from formal declaration procedures
or accorded immediate release on the basis of
minimal data requirements as proposed in the World
Customs Organization Express Consignment
Guidelines. Value levels fixed in accordance with
this Recommended Practice should take account of
the costs of entry processing for Customs and
declarant and should be reviewed, regularly, to take
account of inflation.”
(See also 1973 Kyoto Convention, Annex B.l
Recommended Practice 33.)
Selective examination of goods
ICAO, Convention on International Civil Aviation,
Annex 9 (4.32). "Contracting States shall
accomplish their physical examination of cargo
imported by air on a sampling or selective basis.
The appropriate public authorities of the State
concerned shall also, in consultation with, inter alia,
operators and airport administrations, devise
physical means for carrying out such examination
rapidly."
Reduce documentary requirements
ICAO, Convention on International Civil Aviation,
Annex 9 (4.19). "Contracting States shall endeavour
to simplify documentary requirements for the
clearance of import cargo and reduce to a minimum
the variety of forms and the information to be
shown thereon."
Acceptance of declaration before arrival of
goods
ICAO, Convention on International Civil Aviation,
Annex 9 (4.28) Recommended Practice. "Procedures
should be developed for the submission of pre
import information to Customs prior to arrival of
cargo in order to facilitate the processing of entries."
Simplified Customs documentation for air
cargo up to specified value or weight
WCO, Revised Kyoto Convention, General Annex,
Chapter 3 Standard 25. “National legislation shall
make provision for the lodging and registering or
checking of the Goods declaration and supporting
documents prior to the arrival of the goods.”
ICAO, Convention on International Civil Aviation,
Annex 9 (4.26). "Contracting States shall make
arrangements for the use of a simplified form of
Customs documentation and facilitate prompt
clearance and release in respect of that imported
cargo, including private gift packages and trade
samples, which exceeds the limits set in accordance
with 4.25 and shall establish higher limits of value
or weight up to which such simplified
documentation will apply."
(See also 1973 Kyoto Convention, Annex B.l
Recommended Practice 24 and Note.)
Abolition of consular invoices and fees
ICAO, Convention on International Civil Aviation,
Annex 9 (4.23). "Contracting States shall not require
consular formalities or consular charges or fees in
connection with documents for the clearance of air
cargo."
Commercial invoice the basic document
ICAO, Convention on International Civil Aviation,
Annex 9 (4.20). "The commercial invoice, which
includes the information required by the importing
country for the clearance of goods, shall constitute
the basic document for the accomplishment of
Customs or other governmental formalities."
Priority examination of live animals,
perishables, etc.
ICAO, Convention on International Civil Aviation,
Annex 9 (4.29). “Contracting States shall, subject to
compliance with any national prohibitions or
restrictions and any required aviation security or
appropriate narcotics control measures, make
arrangements whereby special air cargo consign
ments, e.g. disaster relief shipments, perishable
goods (livestock, plants, foodstuffs, etc) can be
released and/or cleared immediately upon arrival.”
Provisional
available
declaration
if all
data
not
ICAO, Convention on International Civil Aviation,
Annex 9 (4.27) Recommended Practice. “Contrac
ting States should make arrangements whereby the
maximum number of consignments not falling
under 4.25 and 4.26 above can be released promptly
27
WCO, Revised Kyoto Convention, General Annex,
Chapter 3 Transitional Standard 32
“For authorized persons who meet criteria specified
by the Customs, including having an appropriate
record of compliance with Customs requirements
and a satisfactory system for managing their
commercial records, the Customs shall provide for :
after arrival upon presentation of a provisional entry
document and an adequate guarantee for payment of
duties and other taxes and charges, subject to com
plete fulfilment of Customs and other requirements
within a time limit specified by that State.”
Customs or other official information not to
be required on air waybill
ICAO, Convention on International Civil Aviation,
Annex 9 (4.22)". "Contracting States which continue
to require the air waybill to be presented for
inspection in connection with the clearance of cargo
shall not require the consignor and/or operator to
place special information for customs or other
governmental purposes on the air waybill."
- release of the goods on the provision of the
minimum information necessary to identify the
goods and permit the subsequent completion of
the final Goods declaration;
- clearance of the goods at the declarant's premises
or another place authorized by the Customs;
and, in addition, to the extent possible, other
special procedures such as :
- allowing a single Goods declaration for all imports
or exports in a given period where goods are
imported or exported frequently by the same
person;
- use of the authorized persons’ commercial records
to self-assess their duty and tax liability and,
where appropriate, to ensure compliance with
other Customs requirements;
- allowing the lodgement of the Goods declaration
by means of an entry in the records of the
authorized person to be supported subsequently by
a supplementary Goods declaration.”
Expeditious clearance of goods
UN/CEFACT, Recommendation No. 13 “The
Working Party ...
“Being aware that the Customs Co-operation
Council has sought in International Convention on
the Simplification and Harmonization of Customs
Procedures (Kyoto Convention) (revised June
1999), and especially in the General Annex to
encourage Customs authorities to grant special
facilities for the expeditious clearance of goods; it is
recommended that Governments to take note of the
provisions contained in the Kyoto Convention and
especially in the General Annex and to examine the
possibility of introducing them into their national
legislation”.
Customs to give information on clearance
procedure
WCO, Revised Kyoto Convention, General Annex,
Chapter 9 Standard 1. “The Customs shall ensure
that all relevant information of general application
pertaining to Customs law is readily available to
any interested person.”
Immediate release to importer’s premises
UN/CEFACT, Recommendation No. 13 “The
Working Party “...Recalling that in some countries
special procedures have been introduced whereby
detailed physical inspection of goods and
presentation of the formal evidence at the point of
importation are no longer required, allowing
approved importers to take the goods directly to
their own premises, sometimes on a deferred
payment basis, on condition that:
-“the goods may be inspected;
-“the Import Declaration and satisfactory supporting
evidence is made available when required;
-“such information is retained for later verification;
and
-“security of payment and responsibility for the
goods are assured;
c<
(See also 1973 Kyoto Convention, Annex B.l
Recommended Practice 65.)
WCO, Recommendation of the Customs Co
operation Council (WCO) concerning the use of
World Wide Web sites by Customs Administrations
“ RECOMMENDS that Members of the Council
and members of the United Nations Organization or
its specialized agencies, and Customs or Economic
Unions, should implement a Customs World Wide
Web site for their administration,
FURTHER RECOMMENDS that Members of the
Council and members of the United Nations
Organization or its specialized agencies, and
Customs or Economic Unions, should make
available on Customs administration web, sites,
where practical or feasible, the data content as
specified in the Annex to this Recommendation.”
“Recommends to Governments to take account of
the developments referred to above with a view
to the further promotion of all steps which would
facilitate international trade procedures;”
28
equipment on the condition that it is used only in
the immediate vicinity of the means of transport for
commercial use, for example within an airport or on
shore at ports of call.
Customs to supply information to assist
completion of goods declaration
WCO, Revised Kyoto Convention, General Annex,
Chapter 9 Standard 4. “At the request of the
interested person, the Customs shall provide, as
quickly and as accurately as possible, information
relating to the specific matters raised by the
interested person and pertaining to Customs law.”
Normally a separate security or temporary ad
mission document is not required for this
equipment.”
(See also 1973 Kyoto Convention, Annex A.3
Standard 10 and Note.)
WCO, Revised Kyoto Convention, General Annex,
Chapter 9 Standard 5. “The Customs shall supply
not only the information specifically requested but
also any other pertinent information which they
consider the interested person should be made
aware of.”
Limited Customs control of imported goods
WCO, Revised Kyoto Convention, General Annex,
Chapter 6 Standard 2._“Customs control shall be
limited to that necessary to ensure compliance with
the Customs law.”
(See also 1973 Kyoto Convention, Annex B.l
Recommended Practice 10.)
(See also 1973 Kyoto Convention, Annex A.l
Standard 9.)
Inward processing use of equivalent
domestic goods
WCO, Revised Kyoto Convention, Specific Annex F,
Chapter 1 Recommended Practice 25. “The
products obtained from the treatment of equivalent
goods should be deemed to be compensating
products for the purposes of this Chapter (settingoff with equivalent goods).”
General security for goods in temporary
store
WCO, Revised Kyoto Convention, General Annex,
Chapter 5 Standard 5. “When security is required to
ensure that the obligations arising from a Customs
procedure will be fulfilled, the Customs shall accept
a general security, in particular from declarants who
regularly declare goods at different offices in the
Customs territory.”
WCO, Revised Kyoto Convention, Specific Annex F,
Chapter 1 Recommended Practice 26. “When
setting-off with equivalent goods is allowed, the
Customs should permit the exportation of
compensating products prior to the importation of
goods for inward processing.”
(See also 1973 Kyoto Convention, Annex A.2
Standard 8.)
No security if Customs control temporary
store
WCO, Revised Kyoto Convention, General Annex,
Chapter 5 Standard 4. “Where national legislation
provides, the Customs shall not require security
when they are satisfied that an obligation to the
Customs will be fulfilled.”
(See also 1973 Kyoto Convention, Annex E.6
Recommended Practice 43 and Note.)
Temporary importation of special handling
equipment
WCO, Revised Kyoto Convention, Specific Annex J,
Chapter 3 Recommended Practice 7. “Special
equipment for the loading, unloading, handling and
protection of cargo, whether or not it is capable of
being used separately from the means of transport
for commercial use, which is imported with the
means of transport for commercial use and is
intended to be re-exported therewith, should be
allowed to be brought temporarily into a Customs
territory conditionally relieved from payment of
import duties and taxes.”
(See also 1973 Kyoto Convention, Annex A.2
Recommended Practice 10.)
No duty on goods destroyed in temporary'
store
WCO, Revised Kyoto Convention, General Annex,
Chapter 3 Standard 44. “When goods have not yet
been released for home use or when they have been
placed under another Customs procedure, and
provided that no offence has been detected, the
person concerned shall not be required to pay the
duties and taxes or shall be entitled to repayment
thereof:
- when at his request, such goods are abandoned to
the Revenue or destroyed or rendered
commercially valueless under Customs control,
Revised Kyoto Convention, Guidelines to Specific
Annex J, Chapter 3, Part 5. on Temporary
admission ofparts and equipment. “Some Customs
administrations allow temporary admission of this
equipment on the condition that it is used only in
29
as the Customs may decide. Any costs involved
shall be borne by the person concerned;
- when such goods are destroyed or irrecoverably
lost by accident or force major, provided that such
destruction or loss is duly established to the
satisfaction of the Customs;
- on shortages due to the nature of the goods when
such shortages are duly established to the
satisfaction of the Customs.
Customs to give information on clearance
procedure
WCO. Revised Kyoto Convention. General Annex,
Chapter 9 Standard 1. “The Customs shall ensure
that all relevant information of general application
pertaining to Customs law is readily available to
any interested person.”
(See also 1973 Kyoto Convention Annex B.l
Standard 65.)
Any waste or scrap remaining after destruction shall
be liable, if taken into home use or exported, to the
duties and taxes that would be applicable to such
waste or scrap imported or exported in that state.”
No separate declaration for samples taken
WCO, Revised Kyoto Convention, General Annex,
Chapter 3 Standard 10. “The Customs shall not
require a separate Goods declaration in respect of
samples allowed to be drawn under Customs
supervision, provided that such samples are
included in the Goods declaration concerning the
relevant consignment.”
(See also 1973 Kyoto Convention, Annex A.l
Standard 21.)
Limit for temporary storage
WCO, Revised Kyoto Convention, Specific Annex A,
Chapter 2 Standard 9. “Where national legislation
lays down a time limit for temporary storage, the
time allowed shall be sufficient to enable the
importer to complete the necessary formalities to
place the goods under another Customs procedure.”
(See also 1973 Kyoto Convention, Annex B.l
Recommended Practice 9.)
Periodic home use declarations
WCO, Revised Kyoto Convention, General Annex,
Chapter 3 Transitional Standard 32.
“For authorized persons who meet criteria specified
by the Customs, including having an appropriate
record of compliance with Customs requirements
and a satisfactory system for managing their
commercial records, the Customs shall provide for:
- release of the goods on the provision of the
minimum information necessary to identify the
goods and permit the subsequent completion of
the final Goods declaration;
- clearance of the goods at the declarant's premises
or another place authorized by the Customs;
and in addition, to the extent possible, other special
procedures such as:
- allowing a single Goods declaration for all imports
or exports in a given period where goods are
imported or exported frequently by the same
person;
- use of the authorized persons’ commercial records
to self-assess their duty and tax liability and,
where appropriate, to ensure compliance with
other Customs requirements;
- allowing the lodgement of the Goods declaration
by means of an entry in the records of the
authorized person to be supported subsequently by
a supplementary Goods declaration.”
(See also 1973 Kyoto Convention, Annex A.2
Standard 14.)
WCO, Revised Kyoto Convention, Specific Annex E,
Chapter 1 Recommended Practice 10. “At the
request of the person concerned, and for reasons
deemed valid by the Customs, the latter should
extend the period initially fixed.”
(See also 1973 Kyoto Convention, Annex A.2
Recommended Practice 15)
Responsibilities and rights of declarant
WCO, Revised Kyoto Convention, General Annex,
Chapter 3 Standard 8. “The declarant shall be held
responsible to the Customs for the accuracy of the
particulars given in the Goods declaration and the
payment of the duties and taxes.”
(See also 1973 Kyoto Convention, Annex B.l
Standard 8.)
WCO, Revised Kyoto Convention, General Annex,
Chapter 3 Standard 9. “Before lodging the Goods
declaration the declarant shall be allowed, under
such conditions as may be laid down by the
Customs:
(a) to inspect the goods; and
(b) to draw samples.”
(See also Revised Kyoto Convention, Guidelines to
the General Annex, Chapter 3, Part 7.3.1. on
Periodic Goods declaration.)
(See also 1973 Kyoto Convention, Annex B.l
Standard 8.)
(See also 1973 Kyoto Convention, Annex B.l
Recommended Practice 25 and Note.)
30
Prompt examination of goods
WCO, Revised Kyoto Convention, General Annex,
Chapter 3 Standard 33. “When the Customs decide
that goods declared shall be examined, this
examination shall take place as soon as possible
after the Goods declaration has been registered.”
WCO, Revised Kyoto Convention, Guidelines to the
General Annex, Chapter 3, Part 8. on Examination
and sampling of the goods. “This Standard (General
Annex, Chapter 3 Standard 33) sets out a key
principle that when Customs decides that goods
should be examined, they are required to carry out
the examination without any delay. The use of the
term “when” implies that all goods that are declared
should not be examined as a matter of course. It is
linked to Standard 6.4 (General Annex, Chapter 6
Standard 4) which states that the decision to
examine goods should be based on risk-assessment
techniques. This will ensure the goods are released
as quickly as possible, even when Customs decides
to examine them.
The decision whether or not to examine the goods
should be made as early as possible. In some cases
Customs may make this decision as soon as the
Goods declaration is registered.”
(See also 1973 Kyoto Convention, Annex B.l
Standard 32.)
Limited Customs control
WCO, Revised Kyoto Convention, General Annex,
Chapter 6 Standard 2. “Customs control shall be
limited to that necessary to ensure compliance with
the Customs law.”
'WCO, Revised Kyoto Convention, General Annex,
Chapter 6 Standard 4. “The Customs shall use risk
analysis to determine which persons and which
goods, including means of transport, should be
examined and the extent of the examination.”
WCO, Revised Kyoto Convention, Guidelines to the
General Annex, Chapter 6, Part 5. on Principles of
Customs control. “Customs controls should
therefore be kept to the minimum necessary to meet
the main objectives and should be carried out on a
selective basis using risk management techniques to
the greatest extent possible.”
(See also 1973 Kyoto Convention, Annex B.l
Standard 38 and Note.)
Clearance by summary examination when
ever possible
WCO, Revised Kyoto Convention, Guidelines to the
General Annex, Chapter 3, Part 8. on Examination
and sampling of the goods. “The examination of
goods can be either summary or detailed. In a
summary examination Customs carries out some or
all of the following checks:
- count the packages;
- compare marks and numbers to that on the
declaration or invoices;
- verily that the goods are the same as those
described on the declaration.
A summary examination may be considered
sufficient where goods of the same description are
imported or exported frequently by the same person
and this person is known by Customs to be reliable;
where the accuracy of the particulars given in the
Goods declaration can be checked against the
supporting documents or against other evidence; or
where the import or export duties and taxes
involved are low.”
(See also 1973 Kyoto Convention, Annex B.l
Recommended Practice 39.)
Detailed examination by selective methods
WCO, Revised Kyoto Convention, Guidelines to the
General Annex, Chapter 3, Part 8. on Examination
and sampling of the goods. “A detailed examination
is warranted when Customs is not satisfied about
the accuracy of the particulars in the Goods
declaration or in the supporting documents.
Likewise, goods liable to substantial import or
export duties and taxes may be routinely subjected
to closer examination. A detailed examination
usually involves:
- thorough inspection of the goods to determine as
accurately as possible their composition;
- verification of the quantity;
- verification of the tariff classification;
- verification of the value; and
- where necessary, verification of.the origin of the
goods.
(See also 1973 Kyoto Convention, Annex B.l
Recommended Practice 40 and Note.)
Provisional declaration if all data not
available
WCO, Revised Kyoto Convention, General Annex,
Chapter 3 Standard 13. “Where, for reasons
deemed valid by the Customs, the declarant does
not have all the information required to make the
Goods declaration, a provisional or incomplete
Goods declaration shall be allowed to be lodged,
provided that it contains the particulars deemed
necessary by the Customs and that the declarant
undertakes to complete it within a specified period.”
Number of copies of goods declaration
WCO. Revised Kyoto Convention, General Annex,
Chapter 3 Standard 15. “The Customs shall require
the lodgement of the original Goods declaration and
only the minimum number of copies necessary.”
(See also 1973 Kyoto Convention, Annex B.l
Recommended Practice 13.)
No unnecessary certification of origin
WCO, Revised Kyoto Convention, Specific Annex K,
Chapter 2 Recommended Practice 2. “Documentary
evidence of origin should be required only when it
is necessary for the application of preferential
Customs duties, of economic or trade measures
adopted unilaterally or under bilateral or
multilateral agreements or of measures adopted for
reasons of health or public order.”
(See also 1973 Kyoto Convention, Annex B.l
Recommended Practice 12 and Note.)
B.2.3
Official documents
Simple formalities for goods permits and
licenses
ICAO, Convention on International Civil Aviation,
Annex 9 (4.24) Recommended Practice. “Where the
nature of the consignment calls for different
clearance agencies, e.g. Customs and veterinary or
phytosanitary controls, Contracting States should
endeavour to delegate authority for clearance to one
of the agencies or, where not feasible, take all
necessary steps to ensure that clearance is carried
out simultaneously and with a minimum of delay.”
(See also 1973 Kyoto Convention, Annex D.2
Standard 2.)
Acceptance of declaration of origin
WCO, Revised Kyoto Convention, Specific Annex K,
Chapter 2 Recommended Practice 12. “Where
documentary evidence of origin is required, a
declaration of origin should be accepted in the
following cases:
(a) goods sent in small consignments addressed to
private individuals or carried in travellers'
baggage, provided that such importations are of a
non-commercial nature and the aggregate value of
the importation does not exceed an amount which
shall not be less than USD 500;
(b) commercial consignments the aggregate value
of which does not exceed an amount, which shall
not be, less than USD 300.
Alignment of Customs import goods
declarations
ICAO, Convention on International Civil Aviation,
Annex
9(4.19.1)
Recommended
Practice.
"Contracting States, in giving effect to 4.19 should
encourage to the maximum extent practicable,
alignment of documents required for the clearance
of import cargo with the United Nations Layout
Key for Trade Documents, to follow the format set
forth in Appendix 10-United Nations Layout Key
for Trade Documents."
Where several consignments of the kind referred to
in (a) or (b) are sent at the same time, by the same
means, to the same consignee, by the same
consignor, the aggregate value shall be taken to be
the total value of those consignments.”
WCO, Revised Kyoto Convention, General Annex,
Chapter 3 Standard 11. “The contents of the Goods
declaration shall be prescribed by the Customs. The
paper format of the Goods declaration shall conform
to the UN-layout key.
For automated Customs clearance processes, the
format of the electronically lodged Goods
declaration shall be based on international standards
for electronic information exchange as prescribed in
the Customs Co-operation Council Recom
mendations on information technology.”
(See also 1973 Kyoto Convention, Annex D.2
Recommended Practice 12.)
Information on origin requirements
WCO, Revised Kyoto Convention, General Annex,
Chapter 9 Standard 1. “The Customs shall ensure
that all relevant information of general application
pertaining to Customs law is readily available to
any interested person.”
(See also 1973 Kyoto Convention, Annex B.l Note
2 to Standard 11.)
(See also 1973 Kyoto Convention, Annex D.2
Standard 14.)
32
Alignment of certificates of origin
WCO, Revised Kyoto Convention, Specific Annex K,
Chapter 2 Recommended Practice 6. “When
revising present forms or preparing new forms of
certificates of origin, Contracting Parties should use
the model form in Appendix I to this Chapter, in
accordance with the Notes in Appendix II, and
having regard to the Rules in Appendix III.
B.3.2 Customs
Limitation of inspection
UNECE, International Convention on the
Harmonization of Frontier Control of Goods, 1982,
Article 10. "The Contracting Parties shall, wherever
possible, provide simple and speedy treatment for
goods in transit, especially for those travelling
under cover of an international Customs transit
procedure, by limiting their inspections to cases
where these are warranted by the actual
circumstances or risks."
(See also 1973 Kyoto Convention, Annex D.2
Recommended Practice 6 and Note.)
B.3
Provisions relating to transit
UNECE, TIR Convention, Article 5
“1. Goods carried under the TER procedure in sealed
road vehicles, combinations of vehicles or
containers shall not as a general rule be subjected to
examination at Customs offices en route.
B.3.1. General
Normally no technical standards controls
UNECE, International Convention on the
Harmonization of Frontier Control of Goods, 1982,
Annex 5, Article 5 - "The controls of compliance
with technical standards do not normally apply to
goods in through transit."
“2. However to prevent abuses, Customs authorities
may in exceptional cases, and particularly when
irregularity is suspected, carry out an examination
of the goods at such offices.”
Normally no quality control
UNECE, International Convention on the
Harmonization of Frontier Control of Goods, 1982,
Annex 6, Article 4. "Quality controls do not
normally apply to goods in through transit."
Exemption from Customs duties
UNECE, TIR Convention, Article 4. "Goods carried
under the TIR procedure shall not be subjected to
the payment or deposit of import or export duties
and taxes at Customs offices en route."
Freedom of transit to be allowed
WTO, General Agreement on Tariffs and Trade,
Article V (2). "There shall be freedom of transit
through the territory of each Contracting Party, via
the routes most convenient for international transit,
for traffic in transit to or from territory of other
Contracting Parties."
WCO, Revised Kyoto Convention, Specific Annex E,
Chapter 1 Standard 3. “Goods being carried under
Customs transit shall not be subject to the payment
of duties and taxes, provided the conditions laid
down by the Customs are complied with and that
any security required has been furnished.”
(See also 1973 Kyoto Convention, Annex E.l
Standard 4.)
No distinction based on flag, origin, owner
ship, etc.
WTO, General Agreement on Tariffs and Trade,
Article V (2). "No distinction shall be made which is
based on the flag of vessels, the place of origin,
departure, entry, exit or destination, or on any
circumstances relating to the ownership of goods, of
vessels or of other means of transport."
Flat rate bonds for transit goods
UNECE, Customs Convention on the International
Transport of Goods under cover of TIR Carnets
(TIR Convention), 1975, Article 8(3). "Each
Contracting Party shall determine the maximum
sum per TIR carnet, which may be claimed from the
guaranteeing association.
"Note: - Customs authorities are recommended to
limit to a sum equal to USD 50,000 per TIR Camet
the maximum amount which may be claimed from
the guaranteeing association. In the case of transport
of alcohol and tobacco Customs authorities are
recommended to increase the maximum amount
which may be claimed from the guaranteeing
association to a sum equal to USD 200,000.
No unnecessary delays or restrictions
WTO, General Agreement on Tariffs and Trade,
Article V (3). “Except in cases of failure to comply
with applicable Customs laws and regulations, such
traffic coming from or going to the territory of other
Contracting Parties shall not be subject to any
unnecessary delays or restrictions.”
33
Any waste or scrap remaining after destruction shall
be liable, if taken into home use or exported, to the
duties and taxes that would be applicable to such
waste or scrap imported or exported in that state.”
No routine calculation of duty on transit
goods
UNECE, Customs Convention on the International
Transport of Goods under cover of TIR Carnets
(TIR Convention), 1975, Article 8 (3) and S (6).
"Each Contracting Party shall determine the
maximum sum per TIR carnet, which may be
claimed from the guaranteeing association.
WCO, Revised Kyoto Convention, General Annex,
Chapter 2 Definition of “repayment" “repayment”
means the refund, in whole or in part, of duties and
taxes paid on goods and the remission, in whole or
in part, of duties and taxes where payment has not
been made.”
"For the camet shall, in the absence of evidence to
the contrary, be assumed purpose of determining the
duties and taxes
the particulars of the goods as
entered in the TIR to be correct."
WCO, Revised Kyoto Convention, Guidelines to the
General Annex, Chapter 3, Part 11.1. on Repayment
or remission of duties and taxes. “When partial
relief of duties and taxes has been granted on
imported goods on the condition that they are re
exported or used for specific purposes, the
repayment or remission may be limited to that part
of the duties and taxes which was not levied.”
TIR transit regime valid for all modes of
transport
UNECE, Customs Convention on the International
Transport of Goods under cover of TIR Carnets
(TIR Convention), 1975, Article 2. "This
Convention shall apply to the transport of goods...
in containers... provided that some portion of the
journey between the beginning and the end of the
TIR operation is made by road."
WCO, Revised Kyoto Convention, Guidelines to the
General Annex, Chapter 4, Part 2.3. on Repayment.
“Goods may be damaged, destroyed or
irrecoverably lost, by accident or through force
majeure. This may also happen while they are still
under Customs control (in transit, in bonded
warehouses or under temporary admission
procedures). In these instances, for reasons of
equity, the duties and taxes already charged might
be refunded in whole or in part.”
Normally no escort of goods
UNECE, TIR Convention, Article 23. "The Customs
authorities shall not
require road vehicles, combination of vehicles or
containers to be escorted at the carrier's expense
on the territory of their country ... except in special
cases"
(See also 1973 Kyoto Convention, Annex E.l
Standard 30 and Note.)
No duty on transit goods accidentally lost or
destroyed
WCO, Revised Kyoto Convention, General Annex,
Chapter 3 Standard 44. “When goods have not yet
been released for home use or when they have been
placed under another Customs procedure, and
provided that no offence has been detected, the
person concerned shall not be required to pay the
duties and taxes or shall be entitled to repayment
thereof:
- when at his request, such goods are abandoned to
the Revenue or destroyed or rendered
commercially valueless under Customs control, as
the Customs may decide. Any costs involved shall
be bome by the person concerned;
- when such goods are destroyed or irrecoverably
lost by accident or force majeure, provided that
such destruction or loss is duly established to the
satisfaction of the Customs;
- on shortages due to the nature of the goods when
such shortages are duly established to the
satisfaction of the Customs.
No escort of goods in transit or itinerary
WCO, Revised Kyoto Convention, Specific Annex E,
Chapter 1 Standard 15. “Only when they consider
such a measure to be indispensable shall the
Customs:
(a) require goods to follow a prescribed itinerary; or
(b) require goods to be transported under Customs
escort.”
(See also 1973 Kyoto Convention, Annex E.l
Standard 23.)
Commercial or transport document as
descriptive part of transit declaration
WCO, Revised Kyoto Convention, Specific Annex E,
Chapter 1 Standard 6.
“Any commercial or
transport document setting out clearly the necessary
particulars shall be accepted as the descriptive part
of the Goods declaration for Customs transit and
this acceptance shall be noted on the document.”
(See also 1973 Kyoto Convention, Annex E.l
Recommended Practice 13.)
34
No unnecessary delays or restrictions
WTO, General Agreement on Tariffs and Trade,
Article V (3). "Except in cases of failure to comply
with applicable Customs laws and regulations, such
traffic coming from or going to the territory of other
Contracting Parties shall not be subject to any
unnecessary delays or restrictions."
WCO, Revised Kyoto Convention, General Annex,
Chapter 5 Standard 3. “Any person required to
provide security shall be allowed to choose any
form of security provided that it is acceptable to the
Customs.”
B.3.3 Health and Safety
General
security
for several
transit
operations
WCO, Revised Kyoto Convention, General Annex,
Chapter 5 Standard 5. “When security is required
to ensure that the obligations arising from a
Customs procedure will be fulfilled, the Customs
shall accept a general security, in particular from
declarants who regularly declare goods at different
offices in the Customs territory.”
(See also 1973 Kyoto Convention, Annex, E.l
Recommended Practice 15.)
No medicosanitary inspection for goods in
transit if no contamination risk
UNECE, International Convention on the
Harmonization of Frontier Control of Goods, 1982,
Annex 2, Article 4. “Within the framework of
Conventions in force the Contracting Parties shall,
as far as possible, dispense with the medicosanitary
inspection of goods in transit in those circumstances
where there is no risk of contamination.”
(See also 1973 Kyoto Convention, Annex E.l
Standard 17.)
No veterinary inspection for animal products
in transit if no contamination risk
UNECE, International Convention on the
Harmonization of Frontier Control of Goods, 1982,
Annex 3, Article 5. “Within the framework of
conventions in force the Contracting Parties shall,
as far as possible, dispense with the veterinary
inspection of animal products in transit in those
circumstances where there is no risk of
contamination.”
On completion, discharge of security without
delay
WCO, Revised Kyoto Convention, General Annex,
Chapter 5 Standard 7. “Where security has been
furnished, it shall be discharged as soon as possible
after the Customs are satisfied that the obligations
under which the security was required have been
duly fulfilled.”
(See also 1973 Kyoto Convention, Annex E.l
Standard 28.)
No phytosanitary inspection for goods in
transit if no contamination risk
UNECE, International Convention on the
Harmonization of Frontier Control of Goods, 1982,
Annex 3, Article 5. “Within the framework of
conventions in force the Contracting Parties shall,
as far as possible, dispense with the phytosanitary
inspection of goods in transit unless such measures
are necessary for the protection of their own plants.”
B.4
Measures relating to transshipment
of goods
B.4.1. Customs
No duty on transhipped goods
WCO, Revised Kyoto Convention, Specific Annex E,
Chapter 2 Standard 2. “Goods admitted to trans
shipment shall not be subject to the payment of
duties and taxes, provided the conditions laid down
by the Customs are complied with.”
B.3.4 Security
Declarant to choose form of security
WCO, Revised Kyoto Convention, General Annex,
Chapter 5 Standard 1. “National legislation shall
enumerate the cases in which security is required
and shall specify the forms in which security is to
be provided.”
(See also 1973 Kyoto Convention, Annex E.2
Standard 3.)
No duty on destroyed transshipment goods
WCO, Revised Kyoto Convention, General Annex.
Chapter 3 Standard 44. “When goods have not yet
been released for home use or when they have been
placed under another Customs procedure, and
provided that no offence has been detected, the
person concerned shall not be required to pay the
duties and taxes or shall be entitled to repayment
thereof:
(See also 1973 Kyoto Convention, Annex E.l
Standard 14.)
35
- when at his request, such goods are abandoned to
the Revenue or destroyed or rendered
commercially valueless under Customs control, as
the Customs may decide. Any costs involved shall
be borne by the person concerned;
WCO. Revised Kyoto Convention, General Annex,
Chapter 2 Definition of “repayment” “repayment”
means the refund, in whole or in part, of duties and
taxes paid on goods and the remission, in whole or
in part, of duties and taxes where payment has not
been made.”
- when such goods are destroyed or irrecoverably
lost by accident or force majeure, provided that
such destruction or loss is duly established to the
satisfaction of the Customs;
WCO. Revised Kyoto Convention, Guidelines to the
General Annex, Chapter 3, Part 11.1. on Repayment
or remission of duties and taxes. “When partial
relief of duties and taxes has been granted on
imported goods on the condition that they are re
exported or used for specific purposes, the
repayment or remission may be limited to that part
of the duties and taxes which was not levied.”
- on shortages due to the nature of the goods when
such shortages are duly established to the
satisfaction of the Customs.
Any waste or scrap remaining after destruction shall
be liable, if taken into home use or exported, to the
duties and taxes that would be applicable to such
waste or scrap imported or exported in that state.”
WCO, Revised Kyoto Convention, Guidelines to the
General Annex, Chapter 4, Part 2.3. on Repayment.
“Goods may be damaged, destroyed or
irrecoverably lost, by accident or through force
majeure. This may also happen while they are still
under Customs control (in transit, in bonded
warehouses or under temporary admission
procedures). In these instances, for reasons of
equity, the duties and taxes already charged might
be refunded in whole or in part.”
(See also 1973 Kyoto Convention, Annex E.2
Standard 24 and Note.)
(See also 1973 Kyoto Convention, Annex E.2
Standard 24.)
Reduced duty if goods damaged and not
exported
WCO, Revised Kyoto Convention, General Annex,
Chapter 3 Standard 44. “When goods have not yet
been released for home use or when they have been
placed under another Customs procedure, and
provided that no offence has been detected, the
person concerned shall not be required to pay the
duties and taxes or shall be entitled to repayment
thereof:
- when, at his request, such goods are abandoned to
the Revenue or destroyed or rendered
commercially valueless under Customs control, as
the Customs may decide. Any costs involved shall
be bome by the person concerned;
Normally no examination of transshipments
WCO, Revised Kyoto Convention, General Annex,
Chapter 6 Standard 2. “Customs control shall be
limited to that necessary to ensure compliance with
the Customs law.”
(See also 1973 Kyoto Convention, Annex E.2
Recommended Practice 16.)
- when such goods are destroyed or irrecoverably
lost by accident or force major, provided that such
destruction or loss is duly established to the
satisfaction of the Customs;
Normally no escort of transshipments
WCO, 1973 Kyoto Convention, Annex E.2 Standard
18. "Only when they consider such a measure to be
indispensable shall the Customs authorities:
"(a) Require goods to follow a prescribed itinerary;
or
"(b) Require goods to be transported under escort."
- on shortages due to the nature of the goods when
such shortages are duly established to the
satisfaction of the Customs.
Any waste or scrap remaining after destruction shall
be liable, if taken into home use or exported, to the
duties and taxes that would be applicable to such
waste or scrap imported or exported in that state.”
36
General security for regular transshipments
WCO, Revised Kyoto Convention, General Annex,
Chapter 5 Standard 5. “When security is required
to ensure that the obligations arising from a
Customs procedure will be fulfilled, the Customs
shall accept a general security, in particular from
declarants who regularly declare goods at different
offices in the Customs territory.”
(See also 1973 Kyoto Convention, Annex E.2
Standard 14.)
B.4.2 Security
Declarant to choose form of security
WCO, Revised Kyoto Convention, General Annex,
Chapter 5 Standard I. “National legislation shall
enumerate the cases in which security is required
and shall specify the forms in which security is to
be provided.”
(See also 1973 Kyoto Convention, Annex E.2
Standard 11.)
WCO, Revised Kyoto Convention, General Annex,
Chapter 5 Standard 6. “Where security is required,
the amount of security to be provided shall be as
low as possible and, in respect of the payment of
duties and taxes, shall not exceed the amount
potentially chargeable.”
(See also 1973 Kyoto Convention, Annex E.2
Recommended Practice 15.)
WCO, Revised Kyoto Convention, General Annex,
Chapter 5, Standard 3. “Any person required to
provide security shall be allowed to choose any
form of security provided that it is acceptable to the
Customs.”
(See also 1973 Kyoto Convention, Annex, E.2
Recommended Practice 12.)
C.
C.l
Provisions relating to transport and transport equipment
authorized agent or the pilot-in-command, but may,
when necessary, require the health section thereof to
be signed by a crew member when the General
Declaration itself has been signed by a non-crew
member."
Airtransport
Minimization of dwell-time of air cargo
ICAO, Convention on International Civil Aviation,
Annex 9 (4.31). "Contracting States, in co-operation
with operators, airport authorities and other
agencies concerned with the handling, clearance and
forwarding of goods, shall take the necessary steps
to reduce to a minimum the dwell-time of air cargo
in airport cargo terminals.
Standard Manifest for air cargo
ICAO, Convention on International Civil Aviation,
Annex 9 (2.9). - "A Contracting State which
continues to require the presentation of a Cargo
Manifest shall, apart from the information indicated
in the heading of the format of the Cargo Manifest
set forth in Appendix 3, not require more than the
following three items:
"a) the air waybill number;
"b) the number of packages related to each air
waybill number; and
"c) the nature of the goods.
No General Declaration for air transport
ICAO, Convention on International Civil Aviation,
Annex 9 (2.5). - "Contracting States shall not require
the presentation of the General Declaration when
this information can be readily obtained in an
alternative and acceptable manner."
Use of ICAO standard General Declaration
if one required
ICAO, Convention on International Civil Aviation,
Annex 9 (2.5.1). - "A Contracting State which
continues to require the presentation of a General
Declaration shall limit its requirements to the items
and shall follow the format set forth in Appendix I General Declaration."
"The Cargo Manifest shall be accepted either when
it follows the above-mentioned format, or a clear
and understandable format adapted to electronic
data-processing techniques.
"Note: - It is part of the intention of this provision
that, for the purpose of reporting air cargo on arrival
to the authorities, operators be given the following
options subject to the agreement of the
Governments concerned:
"a) submission of the Cargo Manifest as per
Appendix 3 when prepared by the station of
loading abroad; or
Agent or pilot may sign declaration
ICAO, Convention on International Civil Aviation,
Annex 9 (2.5.3). - "A Contracting State which
continues to require the presentation of the General
Declaration shall accept it when signed by either the
37
"b) preparation and submission of the Cargo
Manifest on arrival on the basis of
shipments actually landed; or
”c) submission of the information required in
the Cargo Manifest in a different way, such
as direct transmission into a computer,
teletype listings, or one copy of the air
waybill per shipment."
Such regulations should not unreasonably interfere
with the necessary use by the airline concerned of
such ground equipment and security equipment.”
(Note gives a list of items of the kind that should be
admitted under this provision.)
No duty' on air transport training equipment
ICAO, Convention on International Civil Aviation,
Annex 9 (4.49) Recommended Practice. "Instruct
ional material and training aids imported by an
airline of another Contracting State into the territory
of a Contracting State for use in connection with the
technical training of ground and flight personnel
required to establish and maintain an international
service operated by that airline should be admitted
free of Customs duties and other taxes and charges,
subject to compliance with the regulations of the
Contracting State concerned."
Nature of goods not to be shown on Standard
Manifest
ICAO, Convention on International Civil Aviation,
Annex 9 (2.9.1) Recommended Practice -"Con
tracting States should dispense with the requirement
for information concerning the nature of goods in
the Cargo Manifest. A Contracting State should
require the information listed on the Manifest only
once."
(A note gives a list of items of the kind that should
be admitted under this provision.)
Minimum
documentation
for
aircraft
arrival/departure
ICAO, Convention on International Civil Aviation,
Annex 9 (2.3). - "No document, other than those
provided for in this Chapter, shall be required by the
public authorities from operators for the entry and
departure of aircraft.
C.2
Sea transport
Acceptance of standard manifest
ICS, Standard Manifest Report and Recommen
dation, paragraph 2. - "It is considered advan
tageous to have a model layout for a Standard
Manifest for three main reasons: (a) Mechanization,
(b) Simplification, (c) Facilitation."
"Note: - It is part of the intention of this provision
that standard forms shall not be varied by the
inclusion of national markings thereon."
Use of Standard Bill of Lading
ICS, Standard Format of Bills of Lading, Definitive
version, 1972. - "In the knowledge that the ECE
Layout Key has been adopted by many countries ...
and that the use of documents based on this layout
is being continually extended, shipowners are
recommended to adopt bills of lading based on the
revised ICS Standard Bill of Lading. ... "
Arrival/departure documents not required
for internal stops, only on arrival from and
departure to abroad
ICAO, Convention on International Civil Aviation,
Annex 9(2.18). - "Contracting States shall not
require documents or procedures for entry or
departure of aircraft which are different from or in
excess of those prescribed in this Chapter (i.e.
Chapter 2. Entry and departure of aircraft) in the
case where aircraft stop at two or more international
airports within their territories without intermediate
landing in the territory of another State."
Single
comprehensive
security
for
shipowners
IMO, Convention on Facilitation of International
Maritime Traffic,
1965, Annex B (6.1)
Recommended Practice. “Where public authorities
require bonds or other forms of security from
shipowners to cover liabilities under the Customs,
immigration, public health, agricultural quarantine
or similar laws and regulations of a State, they
should permit the use of a single comprehensive
bond or other form of security wherever possible
No duty on air transport ground equipment
ICAO, Convention on International Civil Aviation,
Annex 9 (4.48) Recommended Practice. "Ground
equipment and security equipment imported into the
territory of a Contracting State by an airline of
another Contracting State for use within the limits
of an international airport in connection with the
establishment or maintenance of an international
service operated by that airline should be admitted
free of Customs duties and, as far as possible, other
taxes and charges, subject to compliance with the
regulations of the Contracting State concerned.
No prior authentication of ship and cargo
documents
IMO, Convention on Facilitation of International
Maritime Traffic, 1965, Annex B (2.16) Standard “Public authorities of the country of any intended
38
port of arrival, discharge, or transit shall not require
any document relating to the ship, its cargo, stores,
passengers, or crew, to be legalized, verified,
authenticated, or previously dealt with by any of
their representatives abroad. This shall not be
deemed to preclude a requirement for the
presentation of a passport or other identity
document of a passenger or crew member for visa
or similar purposes.”
Use of General Declaration
IMO, Convention on Facilitation of International
Maritime Traffic, 1965, Annex B (2.2) Standard.
“The General Declaration shall be the basic
document on arrival and departure providing
information required by public authorities relating
to the ship.”
Same form of General Declaration for
arrival
IMO, Convention on Facilitation of International
Maritime Traffic, 1965, Annex B (2.2.1) Re
commended Practice. “The same form of General
Declaration should be accepted for both arrival and
departure of a ship.”
(See also 1.28 on the abolition of consular
formalities.)
Minimum formalities at second port call
IMO, Convention of Facilitation of International
Maritime Traffic, 1965, Annex B (2.13)
Recommended Practice. “Taking into account the
procedures carried out on arrival of a ship at the
first port of call in the territory of a State, the
formalities and documents required by the public
authorities at any subsequent port of call in that
country visited without intermediate call at a port in
another country should be kept to a minimum.”
Information required on General De
claration
IMO, Convention on Facilitation of International
Maritime Traffic, 1965, Annex B (2.2.2)
Recommended Practice
"-In the General
Declaration public authorities should not require
more than the following information:
“- Name and description of ship
“- Nationality of ship
Particulars regarding registry
“- Particulars regarding tonnage
“- Name of master
Name and address of ship’s agent
Brief description of the cargo
Number of crew
Number of passengers
Brief particulars of voyage
Date and time of arrival, or date of
departure
Port of arrival or departure
Position of the ship in the port.”
Grant of practique by radio
IMO, Convention on Facilitation of International
Maritime Traffic,
1965, Annex B (5.4)
Recommended Practice. “Public Authorities should
whenever practicable authorize granting of pratique
by radio to a ship when, on the basis of information
received from it prior to its arrival, the health
authority for the intended port of arrival is of the
opinion that its arrival will not result in the
introduction or spread of a quarantinable disease.
Health authorities should as far as practicable be
allowed to join a ship prior to entry of the ship into
port.”
Limited documents required on ship’s
arrival
IMO, Convention on Facilitation of International
Maritime Traffic, 1965, Annex B (2.1) Standard.
“Public authorities shall not require for their
retention, on arrival or departure of ships to which
the Convention applies, any documents other than
those covered by the present section. The
documents in question are:
General Declaration
Cargo Declaration
Ship’s Stores Declaration
Crew’s Effects Declaration
Crew List
“- Passenger List
The document required under the Universal
Postal Convention for mail
Maritime Declaration of Health.”
Authentication of General Declaration
IMO, Convention on Facilitation of International
Maritime Traffic, 1965, Annex (2.2.3) Standard.
“Public authorities shall accept a General
Declaration dated and signed by the master, the
ship’s agent or some other person duly authorized
by the master.”
Use of Cargo Declaration for arrival and
departure
IMO, Convention on Facilitation of International
Maritime Traffic, 1965, Annex B (2.3) Standard.
“The Cargo Declaration shall be the basic document
on arrival and departure providing information
required by public authorities relating to the cargo.”
39
IMO, Convention on Facilitation of International
Maritime Traffic, 1965, Annex B (2.11) Standard.
“In respect of a ship's departure from port, public
authorities shall not require more than:
5 copies of the General Declaration
“- 4 copies of the Cargo Declaration
“- 4 copies of the Ship’s Stores Declaration
2 copies of the Crew List
“- 2 copies of the Passenger List”
Information required on Cargo Declaration
IMO, Convention on Facilitation of International
Maritime Traffic, 1965, Annex B (2.3.1)
Recommended Practice. “In the Cargo Declaration
public authorities should not require more than the
following information:
“(a) On arrival
“-Name and nationality of ship
“-Name of master
“-Port arrived from
“-Port where report is made
“-Marks and numbers; number and kind of
packages; quantity and description of the goods
“-Bill of Lading numbers for cargo to be
discharged at the port in question
“-Ports at which cargo remaining on board will be
discharged
“-Original ports of shipment in respect of goods
shipped on through Bills of Lading
Authentication of Cargo Declaration
IMO, Convention on Facilitation of International
Maritime Traffic, 1965, Annex B (2.3.3) Standard.
“Public authorities shall accept a Cargo Declaration
dated and signed by the master, the ship’s agent or
some other person duly authorized by the master.”
ICAO, Convention on International Civil Aviation,
Annex 9 (2.5.2). "When a Contracting State has
eliminated the Passenger Manifest and no longer
requires the General Declaration (except for
purposes of attestation) it shall accept, at the option
of the operator, either a General Declaration or an
appropriate attestation, signed by the authorized
agent or pilot-in-command, on one page only of the
Cargo Manifest. The attestation on the Cargo
Manifest can be provided by means of a rubber
stamp.
“(b) On departure
“-Name and nationality of ship
“-Name of master
“-Port of destination
“-In respect of goods loaded at the port in
question: marks and numbers; number and kind
of packages; quantity and description of the
goods
“-Bill of Lading numbers for cargo loaded at the
port in question.”
Manifest in lieu of Cargo declaration
IMO, Convention on Facilitation of International
Maritime Traffic, 1965, Annex B (2.3.4) Standard "Public authorities shall accept in place of the Cargo
Declaration a copy of the ship's manifest provided it
contains at least the information required in
accordance with Recommended Practices 2.3.1
(C.26) and 2.3.2 (C.27) and is signed or
authenticated, and dated in accordance with
Standard 2.3.3 (C.29)."
Limited information about cargo remaining
on board
IMO, Convention on Facilitation of International
Maritime Traffic, 1965, Annex B (2.3.2.) Standard
“In respect of cargo remaining on board, public
authorities shall require only brief details of the
minimum essential items of information to be
furnished.”
Separate advice of unmanifested parcels
IMO, Convention on Facilitation of International
Maritime Traffic, 1965, Annex B (2.3.4.1) Standard"Public authorities shall allow unmanifested parcels
in possession of the master to be omitted from the
Cargo Declaration provided that particulars of these
parcels are furnished separately."
Number of copies of documents
IMO, Convention on Facilitation of International
Maritime Traffic, 1965, Annex B (2.10) Standard.
“In respect of a ship’s arrival in port, public
authorities shall not require more than:
“— 5 copies of the General Declaration
“- 4 copies of the Cargo Declaration
“— 4 copies of the Ship’s Stores Declaration
“- 2 copies of the Crew’s Effects Declaration
4 copies of the Crew List
4 copies of the Passenger List
1 copy of the Maritime Declaration of Health.”
Acceptance of Bill of Lading as alternative to
Cargo Declaration
IMO, Convention on Facilitation of International
Maritime Traffic, 1965, Annex B (2.3.4.1)
Recommended Practice - "As an alternative, public
40
authorities may accept a copy of the transport
document signed or authenticated in accordance
with Standard 2.3.3 (C.29) or certified as a true
copy, if the nature and quantity of cargo makes this
practicable and provided that any information in
accordance with Recommended Practices 2.3.1
(C.26) and Standard 2.3.2 (C.27) which does not
appear in such documents is also furnished
elsewhere and duly certified."
Issue of single original Bill of Lading
UN/CEFACT, Recommendation No. 12, paragraph
17. “In respect of the concept that bills of lading
should be issued in original only, there is evidence
of a gradual change of thought regarding the norm.
For example, where the 1983 UCP 400 referred to
acceptance of "the full set of originals issued to the
consignor if issued in more than one original...", the
current revision, UCP 500, is likely to use the
wording "...a sole original bill of lading or, if issued
in more than one original, the full set as so issued..."
—i.e. stressing a preference for a sole original, or "a
full set of 1/1". (See ICC document 470-37/72).
No departure Cargo Declaration for cargo
remaining on board
IMO, Convention on Facilitation of International
Maritime Traffic, 1965, Annex B (2.11.1) Standard "A new Cargo Declaration shall not be required on
departure from a port in respect of cargo which has
been the subject of a declaration on arrival in that
port and which has remained on board."
(French law calls for at least two originals, i.e. one
retained by the carrier and one issued to the shipper.
It is the original issued to the shipper, which is of
importance in the concept of a sole original.)
Use of Sea Waybill in preference to Bill of
Lading
UN/CEFACT, Recommendation No. 12, paragraph
42 “... (i) appreciate the advantages and encourage
the use of the non-negotiable sea waybill instead of
the bill of lading, where goods are not traded in
during the course of transit (see paragraphs 10 to
14, 20 of Recommendation No. 12)
Correction of inadvertent errors without
delay to ship
IMO, Convention on Facilitation of International
Maritime Traffic, 1965, Annex B (2.17) Standard "Public authorities shall, without delaying the ship,
allow corrections of errors in a document provided
for in (this) Annex, which they are satisfied are
inadvertent, not of a serious nature, not due to
recurrent carelessness and not made with intent to
violate the laws or regulations, on the condition that
these errors are discovered before the document is
fully checked and the corrections can be effected
without delay."
Simpler Shipping Marks
UN/CEFACT, Recommendation No. 15.“... Govern
ments, international organizations and those
engaged in the international movement and
documentation of goods should:
“(a) adopt a Standard Shipping Mark comprising
Abbreviated name,
Reference number,
Destination, and Package number, as described
hereafter, and note opportunities for further
simplification made possible in certain modes
of transport and by the use of a Common
Access Reference (CAR).
“(b) discontinue requirements, especially official
requirements, for additional information on
packages (e.g. Country of Origin, Import
Licence No., Documentary Credit No.); where
such information is still required, it should be
separated from the Standard Shipping Mark on
packages and should not be required as part of
the mark when reproduced in documents;
“(c) promote the indication on packages of the
Gross Weight, in kilograms, but not of other
weights or dimensions;
“(d) adopt ISO Standards for cargo handling
instructions and United Nations standards for
danger warnings; and
“(e) adopt the physical marking methods, practices
and standards set out in this Recommendation.
Use of model arrival forms
IMO, Convention on Facilitation of International
Maritime Traffic, 1965. - "The six Model Forms
developed by (the then) IMO were adopted in their
final form by the Sixth Assembly of IMO and
recommended for universal use by Resolution
A. 194 (VI) of 29 October 1969."
No penalties for inadvertent errors
IMO, Convention on Facilitation of International
Maritime Traffic, 1965, Annex B (2.18) Standards
"If errors are found in documents provided for in
(this) Annex, signed by or on behalf of a shipowner
or master, no penalties shall be imposed until an
opportunity has been given to satisfy the public
authorities that the errors were inadvertent, not of a
serious nature, not due to recurrent carelessness and
not made with intent to violate laws or regulations."
41
C.3
combination of vehicles or container carrying goods
under cover of the TIR procedure. No guarantee
shall be required for the road vehicle or
combination of vehicles or container."
Multimodal transport
Use of blank-back forms
UN/CEFACT, Recommendation No. 12, paragraph
15 “The 1983 revision of the ICC's Uniform
Customs and Practice for Documentary Credits
(UCP 400) Articles 25 (b (ii)) and 26 (b (ii))
specifically encouraged the use of bills of lading
and combined transport documents which indicated
"...some or all of the conditions of carriage by
reference to a source or document other than the
transport document itself (short form/blank back
transport document)". The current revision, UCP
500, emphasizes banking acceptance of a bill of
lading, a multimodal transport document or a nonnegotiable sea waybill which:
"appears to contain all the terms and conditions of
carriage or only some of such terms and conditions
by reference to a source or document other than the
transport document (short form/blank back transport
documents)."
Acceptance of foreign Customs seals on
containers
UNECE. TIR Convention. Article 22
" 1. As a general rule and except when they examine
the goods in accordance with article 5, paragraph 2,
(i.e. when irregularity is suspected), the Customs
authorities of the Customs offices en route of each
of the Contracting Parties shall accept the Customs
seals of other Contracting Parties, provided that
they are intact. The said Customs authorities may,
however, if control requirements make it necessary,
add their own seals.
"2. The Customs seals thus accepted by a
Contracting Party shall have in the territory of that
Contracting Party the benefit of the same legal
protection as is accorded to the national seals."
It also stresses that:
"banks will not examine the contents of such terms
and conditions."(ICC Document 470 - 37/104 dated
1992.09.17) (It has to be bome in mind that in
certain jurisdictions it is necessary to have evidence
that the consignee is duly aware of the full terms
and conditions to which the short form makes
reference. The use of the short form for a series of
shipments may need explicit acceptance on the part
of the consignee.)
WCO, Revised Kyoto Convention, Specific Annex E,
Chapter 1 Recommended Practice 17. “Customs
seals and identification marks affixed by foreign
Customs should be accepted for the purposes of the
Customs transit operation unless :
- they are considered not to be sufficient;
- they are not secure; or
- the Customs proceed to an examination of the
goods.
When foreign Customs seals and fastenings have
been accepted in a Customs territory, they should be
afforded the same legal protection in that territory
as national seals and fastenings. ”
Use of codes for modes of transport
UN/CEFACT, Recommendation No. 19.
“The
Working Party...recommends that the code structure
described should be applied whenever there is a
need for a coded representation for indicating mode
of transport for purposes of international trade.”
(See also 1973 Kyoto Convention, Annex E.l
Recommended Practice 26.)
Minimum Customs formalities for means of
transport
WCO, Revised Kyoto Convention, General Annex,
Chapter 1 Standard 2. “The conditions to be
fulfilled and Customs formalities to be
accomplished for procedures and practices in this
Annex and in the Specific Annexes shall be
specified in national legislation and shall be as
simple as possible.”
Layout Key for Standard Consignment
Instructions
UN/CEFACT, Recommendation No. 22, “Recom
mends that the layout key appended to the present
recommendation be used as a basis for the design of
standard consignment instructions intended to
convey instructions from either a seller/consignor or
a buyer/consignee to a freight forwarder, carrier or
his agent, or other provider of service, enabling the
movement of goods and associated activities.”
(See also 1973 Kyoto Convention, Annex A.3
Standard 3.)
Undocumented temporary importation of
vehicles or containers containing goods
under TIR
UNECE, TIR Convention, Article 15. "No special
Customs document shall be required in respect of
the temporary importation of a road vehicle,
Temporary importation of means of
transport
WCO, Revised Kyoto Convention, Specific Annex J,
Chapter 3 Recommended Practice 3. “Means of
transport for commercial use, whether loaded or not,
42
- when such goods are destroyed or irrecoverably
lost by accident or force majeure, provided that
such destruction or loss is duly established to the
satisfaction of the Customs;
- on shortages due to the nature of the goods when
such shortages are duly established to the
satisfaction of the Customs.
should be allowed to be brought temporarily into a
Customs territory conditionally relieved from
payment of import duties and taxes, provided that
such means of transport for commercial use are not
used for internal transport in the Customs territory
of the country of temporary admission. They must
be intended for re-exportation without having
undergone any change except normal depreciation
due to their use, normal consumption of lubricants
and fuel and necessary repairs.”
Any waste or scrap remaining after destruction shall
be liable, if taken into home use or exported, to the
duties and taxes that would be applicable to such
waste or scrap imported or exported in that state.”
(See also 1973 Kyoto Convention, Annex A.3
Standard 6.)
(See also 1973 Kyoto Convention, Annex A.3
Standard 33.)
WCO, Revised Kyoto Convention, Specific Annex J,
Chapter 3 Standard 4. “The Customs shall require
security or a temporary admission document for
means of transport for commercial use duly
registered abroad only when they consider it
essential for the purposes of Customs control.”
No prior authentication of means of
transport documents
WCO, Revised Kyoto Convention, Specific Annex J,
Chapter 3 Standard II. “No documents to be
produced to or lodged with the Customs in
connection with the arrival of means of transport for
commercial use shall be required to be legalized,
verified, authenticated or previously dealt with by
any representatives abroad of the country into which
means of transport for commercial use arrive.”
(See also 1973 Kyoto Convention, Annex A.3
Recommended Practice 7.)
WCO, Revised Kyoto Convention, Specific Annex J,
Chapter 3 Standard 5. “Where the Customs fix a
time limit for the re-exportation of means of
transport for commercial use, they shall take into
account all the circumstances of the transport
operations intended.”
(See also 1973 Kyoto Convention, Annex A.3
Standard 25.)
(See also 1.28 on the abolition of consular
formalities.)
(See also 1973 Kyoto Convention, Annex A.3
Standard 8.)
Reduced number of copies of declaration of
arrival
WCO, Revised Kyoto Convention, Specific Annex J,
Chapter 3 Standard 10. “The Customs shall reduce,
as far as possible, the number of copies of the
declaration of arrival required to be submitted to
them.”
WCO, Revised Kyoto Convention, Specific Annex J,
Chapter 3 Recommended Practice 6. “At the
request of the person concerned, and for reasons
deemed valid by the Customs, the latter should
extend any period initially fixed.”
(See also 1973 Kyoto Convention, Annex A.3
Recommended Practice 9.)
(See also 1973 Kyoto Convention, Annex A.3
Standard 21.)
Duty on destroyed or damaged means of
transport
WCO, Revised Kyoto Convention, General Annex,
Chapter 3 Standard 44. “When goods have not yet
been released for home use or when they have been
placed under another Customs procedure, and
provided that no offence has been detected, the
person concerned shall not be required to pay the
duties and taxes or shall be entitled to repayment
thereof:
- when at his request, such goods are abandoned to
the Revenue or destroyed or rendered
commercially valueless under Customs control, as
the Customs may decide. Any costs involved shall
be bome by the person concerned;
Use of foreign containers in internal traffic
WCO, Customs Convention on Containers, 1972,
Article 9. "Contracting Parties shall permit con
tainers granted temporary admission under the
terms of the (present) Convention to be used for the
carriage of goods in internal traffic, in which case
each Contracting Party shall be entitled to impose
one or more of the conditions set out in Annex 3.
"(i.e.: (a) the journey shall bring the container by a
reasonably direct route to, or nearer to, the
place where export cargo is to be loaded or
from where the container is to be exported
empty;
43
"(b) the container will be used only once in
internal traffic before re-exported.)"
Acceptance of approved foreign containers
WCO, Revised Kyoto Convention, Specific Annex E,
Chapter 1 Standard 10. “When a consignment is
conveyed in a transport-unit and Customs sealing is
required, the Customs seals shall be affixed to the
transport-unit itself provided that the transport-unit
is so constructed and equipped that:
(a) Customs seals can be simply and effectively
affixed to it;
no
(b)
goods can be removed from or introduced
into the sealed part of the transport-unit
without leaving visible traces of tampering or
without breaking the Customs seal;
(c) it contains no concealed spaces where goods
may be hidden; and
all
(d)
spaces capable of holding goods are readily
accessible for Customs inspection.
Acceptance of foreign containers for
temporary admission
WCO, Customs Convention on Containers, 1972,
Article 3
"1. Subject to the conditions laid down in articles 4
to 9, each Contracting Party shall grant temporary
admission to containers, whether loaded with goods
or not.
"2. Each Contracting Party reserves the right not to
grant temporary admission to containers which have
been the subject of purchase, hire-purchase, lease or
a contract of a similar nature, concluded by a person
resident or established in its territory."
Temporary admission for replacement parts
for containers
WCO, Customs Convention on Containers, 1972,
Article 10. "Temporary admission shall be granted
to component parts intended for the repair of
temporarily admitted containers."
The Customs shall decide whether transport-units
are secure for the purposes of Customs transit.”
WCO, Revised Kyoto Convention, Guidelines to
Specific Annex E, Chapter 1, Part 6.4. on Fitting
out and approval of the transport-unit. “..There are
several international agreements that contain details
of transport-units approved for the transport of
goods under Customs seal. Some of these
international agreements are the Customs
Convention on Containers, done at Geneva on 18
May 1956, the Customs Convention on the
international transport of goods under cover of TIR
carnets, done at Geneva on 15 January 1959, the
Unite technique des chemins de fer, concluded at
Berne in May 1886 (1960 edition), and the
Regulations of the Central Rhine Commission
concerning the sealing of Rhine navigation vessels
(21 November 1963 version).
Temporary admission for accessories and
equipment for containers
WCO, Customs Convention on Containers, 1972,
Article 11. "The Contracting Parties agree to grant
temporary admission to accessories and equipment
of temporarily admitted containers, which are either
imported with a container to be re-exported
separately or with another container, or imported
separately to be re-exported with a container."
Undocumented temporary importation of
foreign containers
WCO, Customs Convention on Containers, 1972,
Article 6. "... containers temporarily imported under
the terms of the present Convention shall be granted
temporary admission without the production of
Customs documents being required on their
importation and re-exportation and without the
furnishing of a form of security."
Transport-units may also be approved in the future
pursuant to new agreements that could supersede
those listed above. Furthermore, additional
arrangements for approval can be made by
administrations through bilateral or multilateral
agreement for transport-units to be used for
Customs transit solely within their territories, such
as containers having an internal volume of less than
one-cubic metre but which in all other respects
qualify for Customs treatment as containers.”
(See also 1973 Kyoto Convention, Annex E.l Note
to Standard 21.)
44
D.
Provisions relating to the movement of persons
No passenger manifest to be required for air
transport
ICAO, Convention on International Civil Aviation,
Annex 9 (2.7). - "Contracting States shall not
normally require the presentation of a Passenger
Manifest, but when this type of information is
required it may also be provided in an alternative
and acceptable manner."
Use of Standard Passenger Manifest if one
Required
ICAO, Convention on International Civil Aviation,
Annex 9 (2.7). - "Contracting States shall not
normally require the presentation of a Passenger
Manifest, but when this type of information is
required it may also be provided in an alternative
and acceptable manner."
"Note: - If the type of information referred to in 2.7
above is required, it should be limited to the items
shown in the format of a Passenger Manifest set
forth in Appendix 2.
E.
Provisions relating to the management of dangerous goods and
harmful substances
placarded, and are in all respects in proper condition
for transport according to applicable international
and national governmental regulations.”
Separate advice of dangerous goods
IMO, Convention on Facilitation of International
Maritime Traffic, 1965, Annex B (2.3) Standard.
“The Cargo Declaration shall be the basic document
on arrival and departure providing information
required by public authorities relating to the cargo.
However, particulars of any dangerous cargo may
also be required to be furnished separately.”
IV. It should be possible to derive the emergency
information from the UN number to ensure that no
additional information is required. (Where there is
no UN Number available this information can be
derived from the proper shipping name). The
manual entry of additional related information or
codes on documents should not be required. As an
example transport emergency information can be
provided in the form of standard, pre-printed tables
for each substance or group of substances, each
table bearing as a key reference the United Nations
number for that substance(s). (It should be noted
however, that this information is not required for the
rail mode).
Information relating to dangerous goods
UN/CEFACT, Recommendation No. II.
“I. The harmonisation of the overall information on
requirements of dangerous goods documents
between the different modes of transport should be
pursued as a matter of priority. This should be
carried out according to Chapter 13 of the United
Nations Recommendations on the Transport of
dangerous Goods (“Orange Book”) in its latest
amended version.
Use of dangerous goods declaration
UN/CEFACT, Recommendation No. II
“VI. “Whenever possible, the dangerous goods
declaration should be incorporated in, or combined
with, an existing transport or cargo handling
documents;
II. The actual data elements required to identify the
goods should be standardised throughout the
different modes of transport. It is recommended that
these should be: Proper Shipping Name, Class
Division, UN Number and Packing Group, as
recommended in the “Orange Book”.
VII. “Where special separate forms are used for
dangerous goods forms (including standard forms
contained in Recommendations, regulations,
international Conventions and annexes thereto),
they should be designed in accordance with the
aligned recommended layout contained in this
Recommendation”
III. The single form of words held in the “Orange
Book” should be adopted as the text for the legal
declaration by all regulations and conventions
governing different modes of transport:
“I hereby declare that the contents of this
consignment are fully and accurately described
above by the proper shipping name, and are
classified, packaged, marked and labelled/
45
IX. “Where special additional documentary
requirements exist, such as for radioactive
substances or government exemption, regulations
and conventions should pennit incorporation of the
necessary data in the dangerous goods declaration
itself, as an optional alternative to a separate
document.”
VIII. “Regulations and Conventions should not
preclude the transmission of dangerous goods
information by electronic data interchange (EDI)
and any legal barriers which exist, whether they be
national or international, should be removed. Where
possible this method of transfer of information
should be actively encouraged;”
F.
Provisions relating to payment procedures
taxes, it shall specify the conditions under which
such facility is allowed.”
Use of abbreviations for PAYTERMS
UN/CEFACT, Recommendation No. 17.
“The
Working Party ... draws attention to the
‘PAYTERMS’ corresponding to conditions of
payment which are most frequently used in
international trade, which can be employed when
the contract of sale to which they relate makes this
appropriate; recommends that the abbreviations
shown in the list of ‘PAYTERMS’ be used in such
contracts.”
WCO, Revised Kyoto Convention. General Annex,
Chapter 4 Standard 16. “Deferred payment shall be
allowed without interest charges to the extent
possible.”
(See also 1973 Kyoto Convention, Annex B.l
Recommended Practice 51 and Note.)
Proof of duty payment to be issued
WCO, Revised Kyoto Convention, General Annex,
Chapter 4 Standard 12. “When the duties and taxes
have been paid, a receipt constituting proof of
payment shall be issued to the payer, unless there is
other evidence constituting proof of payment.”
Duty payment by means other than cash
WCO, Revised Kyoto Convention, General Annex,
Chapter 4 Standard 6. “National legislation shall
specify the methods that may be used to pay the
duties and taxes.”
WCO, Revised Kyoto Convention, Guidelines to the
General Annex, Chapter 4, Part 2.1.3. on Payment.
“Often the receipt is given on the declarant’s copy
of the declaration or, in the case of periodic
payments, on the monthly statements. Sometimes
the receipt may be issued by an authorized body
other than a Customs office.”
WCO, Revised Kyoto Convention, Guidelines to the
General Annex, Chapter 4, Part 2.1.3. on Payment.
“To facilitate the accounting procedure, Customs
should accept payment of duties and taxes in forms
other than cash, such as travellers cheques, money
orders, certified cheques, uncertified cheques (in
specified circumstances), bonds, credit cards,
securities, etc. A modem practice which is highly
recommended is that electronic funds transfer
systems be established wherever possible, allowing
for quick and efficient payment. This is especially
useful for Customs brokers and traders who
import/export frequently on a large scale, paying
considerable amounts of duties and taxes on a
monthly basis. The use of electronic data
interchange (EDI) is also useful in expediting
payment.”
(See also 1973 Kyoto Convention, Annex B.l
Recommended Practice 49 and Note.)
(See also 1973 Kyoto Convention, Annex B.l
Standard 56 and Note.)
Refund of overpayments
WCO, Revised Kyoto Convention, General Annex,
Chapter 4 Standard 18. “Repayment shall be
granted where it is established that duties and taxes
have been overcharged as a result of an error in
their assessment.”
WCO, Revised Kyoto Convention, General Annex,
Chapter 4 Standard 22. “Where it is established by
the Customs that the overcharge is a result of an
error on the part of the Customs in assessing the
duties and taxes, repayment shall be made as a
matter of priority.”
Deferred duty payments
WCO, Revised Kyoto Convention, General Annex,
Chapter 4 Standard 15. “Where national legislation
provides for the deferred payment of duties and
(See also 1973 Kyoto Convention, Annex B.l
Standard 42.)
46
G.
Provisions relating to the use of Information and Communications
Technology (ICT)
cargo facilitation, Contracting States shall
encourage international airline operators, handling
companies,_airports, customs and other authorities
and cargo agents to exchange data electronically, in
conformance with relevant UN Electronic Data
Interchange for Administration, Commerce and
Transport (UN/EDIFACT) international standards,
in advance of the arrival of the aircraft, to facilitate
cargo processing”
Basic principles for the introduction of EDI
ICAO, Convention on International Civil Aviation,
Annex 9 (4.9) Recommended Practice "When the
introduction, or modification, of electronic dataprocessing techniques for air cargo is planned,
Contracting States should endeavour to apply the
following principles:
"(a) affording all interested parties, from the outset,
the opportunity for consultation;
"(b) evaluating existing procedures and eliminating
those which are unnecessary;
"(c) determining those procedures which are to be
computerized;
"(d) adopting existing industry standards such as
the International Air Transport Association
(IATA)/Customs Cooperation Council (CCC)
Joint Customs/Airlines Electronic Data
Interchange Manual and, as they mature,
UN/EDIFACT standards including but not
limited to the UN Trade Data Elements
Directory
(TDED),
Electronic
Data
Interchange for Administration, Commerce and
Transport (EDIFACT syntax rules) and UN
Standard Messages (UNSMs);
"(e) ensuring compatibility with the various
electronic
data-processing
systems
in
existence; and
"(f) adopting a single international electronic
identification standard (e.g. bar coding, radio
frequency chips, etc,) to facilitate shipment.”
Customs to provide data interchange with
trade users
ICAO, Convention on International Civil Aviation,
Annex 9 (4.7). "Contracting States shall accept
commercial documents required for the clearance of
air cargo, when produced by electronic dataprocessing techniques, provided they are in legible
and understandable form and that they contain the
required information."
Acceptance of information
technology
prepared Cargo Manifest
ICAO, Convention on International Civil Aviation,
Annex 9 (2.9). "The Cargo Manifest shall be
accepted when it follows ... a clear and under
standable format adapted to electronic dataprocessing techniques.”
Electronic data-processing techniques for
facilitation of ships’ clearance
IMO, Convention on Facilitation of International
Maritime Traffic,
1965,
Annex B (1.4)
Recommended Practice. “When introducing elec
tronic data-processing and interchange techniques to
facilitate the clearance of ships, Contracting
Governments should encourage public authorities
and private parties concerned to exchange data
electronically in conformity with international
Standards.”
Participation by operators to be optional
ICAO, Convention on International Civil Aviation,
Annex 9 (4.10). "When introducing electronic dataprocessing for air cargo, Contracting States shall
consider the principle of optionality regarding
participation by operators and other interested
parties."
Study use of information technology to
facilitate airfreight
ICAO, Convention on International Civil Aviation,
Annex 9 (4.8). "Contracting States shall examine, in
close collaboration with international operators and
others concerned with air cargo, the facilitation
implications which may result from the introduction
of electronic data-processing techniques."
IMO, Convention on Facilitation of International
Maritime Traffic, 1965, Annex B (1.5) Standard.
“Public authorities shall accept any of the
documents required for the clearance of ships, when
produced by electronic data-processing or
interchange techniques that conform with
international Standards, provided they are in legible
and understandable form and contain the required
information.”
Encouragement of use of EDI
ICAO, Convention on International Civil Aviation,
Annex 9 (4.4) Standard. “When introducing
electronic data interchange (EDI) techniques for air
47
IMO, Convention on Facilitation of International
Maritime Traffic, 1965, Annex B (1.6) Standard.
“Public authorities, when introducing electronic
data processing and interchange techniques for the
clearance of ships, shall limit the information they
require to that provided for in the pertinent
provisions of this annex.”
“Recommends to all organizations concerned with
the facilitation of international trade procedures to
examine current commercial documents, to identify
those where signature could safely be eliminated
and to mount an extensive programme of education
and training in order to introduce the necessary
changes in commercial practices.”
IMO, Convention on Facilitation of International
Maritime
Traffic,
1965,
Annex B (1.7)
Recommended Practice.
“When planning for,
introducing, or modifying electronic dataprocessing or interchange techniques for the
clearance of ships, public authorities should
endeavour to:
Use of UN/EDIFACT including use of UN
Trade Data Interchange Directory (TDID)
(Syntax: ISO 9735)
UNECE, UN/EDIFACT is the internationally
recognized standard for EDI messages. The
EDIFACT syntax rules are endorsed as ISO 9735
by the International Organization for Standar
dization. A set of standard messages, each
corresponding to a specific business function, is
available. These messages are maintained according
to agreed rules under the aegis of UNECE. They are
recommended for use whenever EDI takes place
between trade partners.
(a) afford all interested parties, from the outset, the
opportunity for consultation;
(b) evaluate existing procedures and eliminate
those, which are unnecessary;
(c) determine those procedures that are to be
computerized;
(e) use United Nations (UN) Recommendations
and relevant ISO Standards to the maximum
extent practicable;
(f) adapt these techniques for multimodal
applications; and
(g) take appropriate steps to minimize the cost of
implementing these techniques to operators and
other private parties.”
National
legislation
to
cater
for
computerized procedures
WCO, Revised Kyoto Convention, General Annex,
Chapter 7 Standard 4. “New or revised national
legislation shall provide for:
- electronic commerce methods as an alternative to
paper-based documentary requirements;
- electronic as well as paper-based authentication
methods;
- the right of the Customs to retain information for
their own use and, as appropriate, to exchange such
information with other Customs administrations and
all other legally approved parties by means of
electronic commerce techniques.”
(See also Revised Kyoto Convention, Guidelines
General Annex Chapter 7 Part 10)
(See also 1973 Kyoto Convention, Annex J.l
Recommended Practices 5 and 6.)
IMO, Convention on Facilitation of International
Maritime Traffic, 1965, Annex B (1.8) Standard.
“Public authorities, when introducing electronic
data-processing and interchange techniques for the
clearance of ships, shall encourage but not require
their use by maritime operators and other parties
concerned.”
Acceptance
of authentication
without
signature
UN/CEFACT, Recommendation No. 14 “The
Working Party ... recommends to Governments and
international organizations responsible for relevant
intergovernmental agreements to study national and
international texts which embody requirements for
signature on documents needed in international
trade and to give consideration to amending such
provisions, where necessary, so that the information
which the documents contain may be prepared and
transmitted by electronic or other automatic means
of data transfer, and the requirements of a signature
may be met by authentication guaranteed by the
means used in the transmission; and
WCO, Recommendation of the Customs Co
operation Council concerning the transmission and
authentication of customs information which is
being processed by computers.... 1. Allow under
conditions to be laid down by the Customs
authorities, declarants to use various electronic
media (values added networks, national ptt (postal,
telegraph and telephone) agency, ptt, disc, tape,
etc.) for the transmission of Customs regulatory
information to the Customs authorities for
automatic processing and to receive an automatic
response to such information, from the Customs;
48
2. Accept, under conditions to be laid down by the
Customs authorities, Customs regulatory infor
mation from declarants and other government
agencies, which is transmitted by use of electronic
media, validated and authenticated by security
technology, without the need to produce paper
documentation with a handwritten signature;
WCO, 1973 Kyoto Convention, Annex J.l
Recommended Practice 11. "Where practicable the
Customs authorities should, at the request of the
Customs authorities of another country, co-operate
on technical matters concerning computerized
systems for Customs purposes, utilizing the
channels of the (Customs Co-operation) Council so
far as may be possible."
3. Accept, where legal recognition of electronically
transmitted Customs regulatory information is not
resolved, that the Customs should authorize
declarants, under conditions to be laid down by the
Customs or other competent authorities, to produce
Customs regulatory information on plain paper.
"Note: Technical co-operation may take the form of:
- The provision of information,
- The provision of specialized Customs-related
ADP training,
- The organization of seminars, courses or symposia
intended for foreign participants in order to
promote computerization,
- The provision of expert advice following on-site
analysis of existing procedures.”
4. Accept, where EDI security and automated
processing techniques are used but where, due to
legal constraints, the production of paper
documentation and hand written signatures are
required, the periodic submission of paper
documentation or their storage on the premises of
the declarant, under conditions laid down by the
Customs administration; »
Customs to maximize use of information
technology techniques
WCO, Revised Kyoto Convention, General Annex,
Chapter 6 Transitional Standard 9. “The Customs
shall use information technology and electronic
commerce to the greatest possible extent to enhance
Customs control.”
Continuous liaison Customs - national infor
mation technology services
WCO, 1973 Kyoto Convention, Annex J.l
Recommended Practice 16. "Continuous liaison
and consultation should be established at the
national level, between the services responsible for
ADP and the services responsible for Customs
control matters within each Customs administration
with a view to identifying the needs of Customs
control services and in order to make the best
possible use of ADP techniques and facilities to
assist in meeting such needs."
WCO, Revised Kyoto Convention, General Annex,
Chapter 7 Standard 1. “The Customs shall apply
information technology to support Customs
operations, where it is cost-effective and efficient
for the Customs and for the trade. The Customs
shall specify the conditions for its application.”
(See also Revised Kyoto Convention, Guidelines to
the General Annex Chapter 7 Part 4.6)
(See also Revised Kyoto Convention, Guidelines to
the General Annex Chapter 6 Part 2 & 6.2.5)
Customs
administrations to exchange
information technology information
WCO, Revised Kyoto Convention, General Annex,
Chapter 7 Standard 4. “New or revised national
legislation shall provide for:
- the right of the Customs to retain information for
their own use and, as appropriate, to exchange such
information with other Customs administrations and
all other legally approved parties by means of
electronic commerce techniques.”
(See also 1973 Kyoto Convention, Annex J.l
Recommended Practice 4.)
Customs computer systems to use inter
national standards
WCO, Revised Kyoto Convention, General Annex,
Chapter 7 Standard 2. “When introducing computer
applications, the Customs shall use relevant
internationally accepted standards.”
(See also Revised Kyoto Convention, Guidelines to
the General Annex, Chapter 7, Part 6.3. on
Information exchange with other Customs
administrations.)
49
trade whenever there is a need for a coded
designation."
WCO, Revised Kyoto Convention. General Annex,
Chapter 3 Standard 11. “For automated Customs
clearance processes, the format of the electronically
lodged Goods declaration shall be based on
international standards for electronic information
exchange as prescribed in the Customs Co
operation Council Recommendations on infor
mation technology."
Review Customs manual procedures before
computerizing
WCO. 1973 Kyoto Convention, Annex J.l
Recommended Practice 7.
"The Customs
authorities should review and where appropriate
modernize existing manual procedures, documen
tation and coding practices prior to introducing the
use of ADP techniques."
(See also Revised Kyoto Convention, Guidelines to
the General Annex, Chapter 7, Part 6, 7.2, 7.3 &
7.4.)
(See also 1973 Kyoto Convention, Annex J.l
Recommended Practice 9 and Note.)
Customs to provide data interchange with
trade users
WCO, Revised Kyoto Convention, General Annex,
Chapter 7 Standard 4. “New or revised national
legislation shall provide for:
- electronic commerce methods as an alternative to
paper-based documentary' requirements;
- electronic as well as paper-based authentication
methods;
- the right of the Customs to retain information for
their own use and, as appropriate, to exchange such
information with other Customs administrations and
all other legally approved parties by means of
electronic commerce techniques.”
WCO, Recommendation of the Customs Co
operation Council concerning the use of the
UN/EDIFACT ndes for electronic data interchange
“RECOMMENDS that Members of the Council and
all members of the United Nations Organization or
its specialized agencies, and Customs or Economic
Unions should apply the UN/EDIFACT rules as
defined in the Annex to this Recommendation, and
future updated versions of these rules for the
preparation of electronic messages to be
interchanged between Customs administrations and
between Customs administrations and other trade
users.
(See also Revised Kyoto Convention, Guidelines to
the General Annex, Chapter 7, Part 6.1. on
Information exchange with trading partners.)
WCO, Recommendation of the Customs Co
operation Council concerning the use of the WCO
Data Mapping Guide for Customs UN/EDIFACT
messages “RECOMMENDS that Members of the
Customs Co-operation Council and all members of
the United Nations Organization or its specialized
agencies, and Customs or Economic Unions should
adopt the WCO Data Mapping Guide for
UN/EDIFACT messages as the standard reference
document
for
the
development
of all
Implementation
Guides
for
UN/EDIFACT
messages utilized by Customs in exchanging data
electronically between Customs administrations and
between Customs administrations and trade users,
(See also 1973 Kyoto Convention, Annex J.l
Recommended Practice 13 and Note.)
WCO, Recommendation of the Customs Co
operation Council concerning the transmission and
authentication of customs information which is
being processed by computer “1. Allow, under
conditions to be laid down by the Customs
authorities, declarants to use various electronic
media (values added networks, national ptt (postal,
telegraph and telephone) agency, ptt, disc, tape,
etc.) for the transmission of Customs regulatory
information to the Customs authorities for
automatic processing and to receive an automatic
response to such information, from the Customs.”
WCO, Recommendation of the Customs Co
operation Council concerning the use of the codes
for the representation of data elements
“RECOMMENDS that Members of the Council and
members of the United Nations Organization or its
specialized agencies, and Customs or Economic
Unions, should use the codes or coding structures
specified in the Annexes to the Recommendation
and future updated or revised versions of these
codes or coding structures for the representation of
data elements in the interchange of data among
Customs administrations and between Customs
administrations and participants in international
Customs to use information technology
criteria
WCO, Revised Kyoto Convention, Guidelines to the
General Annex, Chapter 7, Part 4.6. on Customs
enforcement. “In order to ensure proper compliance
with Customs regulations, using scarce resources
efficiently, Customs must employ selectivity and
risk assessment techniques.”
(See also 1973 Kyoto Convention, Annex J.l
Recommended Practice 17.)
50
Exchange of information technology between
Customs administrations
Revised Kyoto Convention, General Annex, Chapter
7 Standard 4. “New or revised national legislation
shall provide for:
- electronic commerce methods as an alternative to
paper-based documentary requirements;
- electronic as well as paper-based authentication
methods;
- the right of the Customs to retain information for
their own use and, as appropriate, to exchange
such
information
with
other
Customs
administrations and all other legally approved
parties by means of electronic commerce
techniques.”
(See also Revised Kyoto Convention, Guidelines to
the General Annex, Chapter 7, Part 6.3. on
Information exchange with other Customs
administrations.)
WCO, J973 Kyoto Convention, Annex J.l
Recommended Practice 11. "Where practicable the
Customs authorities should, at the request of the
Customs authorities of another country, co-operate
on technical matters concerning computerized
systems for Customs purposes, utilizing the
channels of the (Customs Co-operation) Council so
far as may be possible."
H.
"Note: Technical co-operation may take the form of:
- The provision of information,
- The provision of specialized Customs-related ADP
training,
- The organization of seminars, courses or symposia
intended for foreign participants in order to
promote computerization,
- The provision of expert advice following on-site
analysis of existing procedures.”
Exchange of information technology infor
mation between Customs and other parties
WCO, 1973 Kyoto Convention, Annex J.l
Recommended Practice 16. "Continuous liaison
and consultation should be established at the
national level, between the services responsible for
ADP and the services responsible for Customs
control matters within each Customs administration
with a view to identifying the needs of Customs
control services and in order to make the best
possible use of ADP techniques and facilities to
assist in meeting such needs."
(See also Revised Kyoto Convention, Guidelines to
the General Annex, Chapter 7, Part 6.2. on
Information exchange with other government
agencies.)
Provisions relating to commercial trade practices and the use of
international standards
Avoidance of excessive detail in credits
ICC, Uniform Customs and Practice for
Documentary Credits, ICC Publication 500, Article
5 (a) "Instructions for the issuance of a Credit, the
Credit itself, instructions for an amendment thereto
and the amendment itself, must be complete and
precise. In order to guard against confusion and
misunderstanding, banks should discourage any
attempt "i. To include excessive detail in the Credit
or in any amendment thereto;"
Authenticated
teletransmission
deemed
operative credit/amendment unless qualified
ICC, Uniform Customs and Practice for
Documentary Credits, ICC Publication 500, Article
11 (a)(i) - (ii). "When an Issuing Bank instructs an
Advising Bank by an authenticated teletransmission
to advise a Credit or an amendment to a Credit, the
teletransmission will be deemed to be the operative
Credit instrument or the operative amendment, and
no mail confirmation should be sent... If the
teletransmission states "full details to follow" (or
words of similar effect) or states that the mail
confirmation is to be the operative Credit instrument
or the operative
amendment,
then the
teletransmission will not be deemed to be the
operative Credit instrument or the operative
amendment..."
Despatch of operative credit/amendment
without
delay
after
qualified
teletransmission
ICC, Uniform Customs and Practice for
Documentary Credits, ICC Publication 500, Article
II (a)(ii). "If the teletransmission states "full of
details to follow" (or words of similar effect) or
states that the mail confirmation is to be the
operative Credit instrument or the operative
amendment, then the teletransmission will not be
deemed to be the operative Credit instrument or the
operative amendment. The Issuing Bank must
forward the operative Credit instrument or the
operative amendment to such Advising Bank
without delay."
61- ICO
1 it ' ' 7
1U o * *t
Bank acceptance of photocopied, carbon
copies and information technology-produced
documents
"(v) appears to contain all of the terms and
conditions of carriage, or some of such
terms and conditions by reference to a
source or document other than the bill of
lading (short form/blank back bill of
lading); banks will not examine the contents
of such terms and conditions, and
"(vi) contains no indication that it is subject to a
charter party and/or no indication that the
carrying vessel is propelled by sail only,
and
"(vii) in all other respects meets the stipulations of
the Credit."
ICC, Uniform Customs and Practice for
Documentary Credits, ICC Publication 500, Article
20(b). “Unless otherwise stipulated in the Credit,
banks will also accept as an original document, a
document(s) produced or appearing to have been
produced:
“(i) By reprographic, automated or computerized
systems;
“(ii) As carbon copies, provided that it is marked as
original and, where necessary, appears to be
signed.”
Limited acceptance of transshipment when
credit prohibits
ICC, Uniform Customs and Practice for
Documentary Credits, ICC Publication 500, Article
23(c). "Unless transshipment is prohibited by the
terms of the Credit, banks will accept a bill of
lading which indicates that the goods will be
transhipped, provided that the entire ocean carriage
is covered by one and the same bill of lading;”
"(d) Even if the Credit prohibits transshipment,
banks will accept a bill of lading which:
"(i) indicates that transshipment will take place as
long as the relevant cargo is shipped in
Containers), Trailer(s) and/or "LASH"
barge(s) as evidenced by the bill of lading,
provided that the entire ocean carriage is
covered by one and the same bill of lading,
and/or
"(ii) incorporates clauses stating that the carrier
reserves the right to tranship."
Copies do not need to be signed
ICC, Uniform Customs and Practice for
Documentary Credits, ICC Publication 500, Article
20 (c)(i) - "Unless otherwise stipulated in the
Credit, banks will accept as copy(ies), a
document(s) either labelled copy or not marked as
an original - a copy (ies) need not be signed."
Acceptance of alternative documents when
credit calls for Bill of Lading
ICC, Uniform Customs and Practice for
Documentary Credits, ICC Publication 500, Article
23(a). "If a Credit calls for a bill of lading covering
a port-to-port shipment, banks will, unless other
wise stipulated in the Credit, accept a document,
however named, which:
"(i) appears on its face to indicate the name of the
carrier and to have been signed or otherwise
authenticated by:
the carrier or a named agent for or on behalf
of the carrier, or
the master or a named agent for or on behalf
of the master ..., and
"(ii) indicates that the goods have been loaded on
board, or shipped on a named vessel..., and
"(iii) indicates the port of loading and the port of
discharge
stipulated
in
the
Credit,
notwithstanding that it:
"a. indicates a place of taking in charge
different from the port of loading, and/or a
place of final destination different from the
port of discharge, and/or
“b. contains the indication ‘intended' or similar
qualification in relation to the port of
loading and/or port of discharge, as long as
the document also states the ports of loading
and/or discharge stipulated in the Credit,
and
"(iv) consists of a sole original bill of lading or, if
issued in more than one original, the full set as
so issued, and
Acceptance of alternative documents when
credit calls for non-negotiable waybill
ICC, Uniform Customs and Practice for
Documentary Credits, ICC Publication 500, Article
24(a). "If a Credit calls for a non-negotiable sea
waybill covering a port-to-port shipment, banks
will, unless otherwise stipulated in the Credit,
accept a document, however named, which:
"(i) appears on its face to indicate the name of the
carrier and to have been signed or otherwise
authenticated by:
" the carrier or a named agent for or on behalf
of the carrier, or
" the master or a named agent for on behalf of
the master..., and
"(ii) indicates that the goods have been loaded on
board, or shipped on a named vessel..., and
"(iii) indicates the port of loading and the port of
discharge stipulated in the Credit, not
withstanding that it:
"a. indicates a place of taking in charge
different from the port of loading, and/or
52
a place or final destination different from
the port of discharge, and/or
"b. contains the indication ‘intended' or
similar qualification in relation to the
port of loading and/or port of discharge,
as long as the document also states the
ports of loading and/or discharge
stipulated in the Credit, and
"(iv) consists of a sole original non-negotiable
sea waybill, or if issued in more than one
original, the full set as so issued, and
"(v) appears to contain all the terms and
conditions of carriage, or some of such
terms and conditions by reference to a
source or document other than the nonnegotiable sea waybill, (short form/blank
back non-negotiable sea waybill); banks
will not examine the contents of such terms
and conditions, and
"(vi) contains no indication that it is subject to a
charter party and/or no indication that the
carrying vessel is propelled by sail only,
and
"(vii) in all other respects meets the stipulations of
the Credit."
Acceptance of alternative documents when
credit calls for multimodal transport
document
ICC, Uniform Customs and Practice for
Documentary Credits, ICC Publication 500, Article
26(a). 'If a Credit calls for a transport document
covering at least two different modes of transport
(multimodal transport), banks will, unless otherwise
stipulated in the Credit, accept a document, however
named, which:
"(i) appears on its face to indicate the name of the
carrier or multimodal transport operator and
to have been signed or otherwise
authenticated by:
the carrier or multimodal transport
operator or a named agent for or on behalf
of the carrier or multimodal transport
operator, or
the master or a named agent for or on
behalf of the master..., and
"(ii) indicates that the goods have been dispatched,
taken in charge or loaded on board..., and
"(iii) a. indicates the place of taking in charge
stipulated in the Credit which may be
different from the port, airport or place of
loading, and the place of final destination
stipulated in the Credit which may be
different from the port, airport or place of
discharge, and/or
"(iii) b. contains the indication ‘intended’ or similar
qualification in relation to the vessel and/or
port of loading and/or port of discharge, and
"(iv) consists of a sole original multimodal transport
document or, if issued in more than one
original, the full set as so issued, and
"(v) appears to contain all of the terms and
conditions of carriage, or some of such terms
and conditions by reference to a source or
document other than the multimodal transport
document (short form/blank back multimodal
transport document); banks will not examine
the contents of such terms and conditions,
and
"(vi) contains no indication that it is subject to a
charter party and/or no indication that the
carrying vessel is propelled by sail only, and
"(vii) in all other respects meets the stipulations of
the Credit."
Acceptance of alternative documents when
credit calls for charter party Bill of Lading
ICC, Uniform Customs and Practice for
Documentary Credits, ICC Publication 500, Article
25. "If a Credit calls for or permits a charter party
bill of lading, banks will, unless otherwise
stipulated in the Credit, accept a document, however
named, which:
"(i)
contains any indication that it is subject to a
charter party, and
"(ii)
appears on its face to have been signed or
otherwise authenticated by:
the master or a named agent for or on
behalf of the master, or
the owner or a named agent for or on
behalf of the owner, ... and
"(iii) does or does not indicate the name of the
carrier, and
"(iv) indicates that the goods have been loaded
on board or shipped on a named vessel, ...
and
"(v)
indicates the port of loading and the port of
discharge stipulated in the Credit, and
"(vi) consists of a sole original bill of lading or, if
issued in more than one original, the full set
as so issued, and
"(vii) contains no indication that the carrying
vessel is propelled by sail only, and
"(viii) in all other respects meets the stipulations of
the Credit."
53
Acceptance of alternative document when
credit calls for air transport document
ICC, Uniform Customs and Practice for
Documentary Credits, ICC Publication 500, Article
27. "If a Credit calls for an air transport document,
banks will, unless otherwise stipulated in the Credit,
accept a document, however named, which:
"(i) appears on its face to indicate the name of the
carrier and to have been signed or otherwise
authenticated by:
the carrier, or
a named agent for or on behalf of the
carrier,..., and
"(ii) indicates that the goods have been accepted for
carriage, and
"(iii) where the Credit calls for an actual date of
dispatch, indicates a specific notation of such
date, the date of dispatch so indicated in the air
transport document will be deemed to be the
date of shipment.
"For the purpose of this Article, the
information appearing in the box on the air
transport document (marked "For Carrier Use
Only" or similar expression) relative to the
flight number and date will not be considered
as a specific notation of such date of dispatch.
"In all other cases, the date of issuance of the
air transport document will be deemed to be
the date of shipment, and
"(iv) indicates the airport of departure and the
airport of destination stipulated in the Credit,
and
"(v) appears to be the original for consignor/shipper
even if the Credit stipulates a full set of
originals, or similar expressions, and
"(vi) appears to contain all of the terms and
conditions of carriage, or some of such terms
and conditions, by reference to a source or
document other than the air transport
document; banks will not examine the contents
of such terms and conditions, and
"(vii) in all other respects meets the stipulations of
the Credit."
appears on its face to indicate the name of the
carrier and to have been signed or otherwise
authenticated by the carrier or a named agent
for or on behalf of the carrier and/or to bear a
reception stamp or other indication of receipt
by the carrier or a named agent for or on
behalf the carrier,... and
"(ii) indicates that the goods have been received
for shipment, dispatch or carriage or wording
to this effect. The date of issuance will be
deemed to be the date of shipment unless the
transport document contains a reception
stamp, in which case the date of the reception
stamp will be deemed to be the date of
shipment, and
"(iii) indicates the place of shipment and the place
of destination as stipulated in the Credit, and
"(iv) in all other respects meets the stipulations of
the Credit."
"(i)
Acceptance of post receipt or certificate of
posting (conditions)
ICC, Uniform Customs and Practice for
Documentary Credits, ICC, Publication 500, Article
29(a). "If a Credit calls for a post receipt or
certificate of posting, banks will, unless otherwise
stipulated in the credit, accept a post receipt or
certificate of posting which:
"(i) appears on its face to have been stamped or
otherwise authenticated and dated in the place
from which the Credit stipulates the goods
are to be shipped or dispatched and such date
will be deemed to be the date of shipment or
dispatch, and
"(ii) in all respects meets the stipulations of the
Credit."
Acceptance of courier receipt (conditions)
ICC, Uniform Customs and Practice for
Documentary Credits, ICC Publication 500, Article
29(b). "If a Credit calls for a document issued by a
courier or expedited delivery service evidencing
receipt of the goods for delivery, banks will, unless
otherwise stipulated in the credit, accept a
document, however named, which:
"(i) appears on its face to indicate the name of the
courier/service, and to have been stamped,
signed or otherwise authenticated by such
named courier/service (unless the Credit
specifically calls for a document issued by a
named Courier/Service, banks will accept a
document issued by any Courier/Service), and
"(ii) indicates a date of pick-up or of receipt or
wording to this effect, such date being deemed
to be the date of shipment or dispatch, and
"(iii) in all other respects meets the stipulations of
the Credit."
Acceptance of alternative documents when
credit calls for road, rail or inland waterway
transport document
ICC,
Uniform Customs and Practice for
Documentary Credits, ICC Publication 500, Article
28 - "If a Credit calls for a road, rail, or inland
waterway transport document banks will, unless
otherwise stipulated in the Credit, accept a
document of the type called for, however named,
which:
54
goods may be described in general terms not
inconsistent with the description of the goods in the
Credit.”
Limited acceptance of freight forwarder
issued transport document
ICC, Uniform Customs and Practice for
Documentary Credits, ICC Publication 500, Article
30. "Unless otherwise authorised in the Credit,
banks will only accept a transport document issued
by a freight forwarder if it appears on its face to
indicate:
"(i) the name of the freight forwarder as a carrier or
multimodal transport operator and to have been
signed or otherwise authenticated by the freight
forwarder as carrier or multimodal transport
operator, or
"(ii) the name of the carrier or multimodal transport
operator and to have been signed or otherwise
authenticated by the freight forwarder as a
named agent for or on behalf of the carrier or
multimodal transport operator."
Use of aligned trade documents
UN/CEFACT, Recommendation No. I (United
Nations Layout Key for Trade Documents)
paragraphs 15-17.
“15. The Recommendation on a layout key for trade
documents aims at providing an international basis
for the standardization of documents used in
international trade and transport and for visual
display representations of such documents.
“16. The United Nations Layout Key for Trade
Documents is intended for application in the
designing of documents related to the various
administrative,
commercial,
productive and
distributive activities constituting external trade,
whether these documents are completed in
handwriting, by mechanical means such as
typewriters and automatic printers, or by
reproductive methods.
Commercial invoices need not be signed
ICC, Uniform Customs and Practice for
Documentary Credits, ICC Publication 500, Article
37(a)._ "Unless otherwise stipulated in the Credit,
commercial invoices:
"(i) must appear on their face to be issued by the
Beneficiary named in the Credit... and
"(ii) must be made out in the name of the Applicant,
... and
"(iii) need not be signed."
“17. The Layout Key is intended particularly as a
basis for the designing of aligned series of forms
employing a master document”.
Note:
In 1984, UNECE WP.4 issued Guidelines for the
Application of the United Nations Layout Key when
Designing Trade Documents (TRADE/WP4/
INF.93; TD/B/FAL/INF.93).
Acceptance of weight certificate on transport
document
ICC, Uniform Customs and Practice for
Documentary Credits, ICC Publication 500, Article
38.
"If a Credit calls for an attestation or
certification of weight in the case of transport other
than by sea, banks will accept a weight stamp or
declaration of weight which appears to have been
superimposed on the transport document by the
carrier or his agent unless the Credit specifically
stipulates that the attestation or certification of
weight must be by means of a separate document."
In 1985, the ISO adopted International Standard
ISO 64.22 Layout Key for Trade Documents.
Use of Country Codes
UN/CEFACT, Recommendation No. 3 “... re
commends that the two-letter alphabetic codes
referred to in the International Standard ISO 3166
as “ISO ALPHA-2 Country Code” should be used
for representing the names of countries for purposes
of International Trade whenever there is a need for a
coded alphabetical designation.”
Acceptance of goods description in general
terms
ICC, Uniform Customs and Practice for
Documentary Credits, ICC Publication 500, Article
37(c).
"The description of the goods in the
commercial invoice must correspond with the
description in the Credit. In all other documents, the
Use of INCOTERMS abbreviations
UN/CEFACT, Recommendation No. 5 “...
recommends that the abbreviations of the trade
terms ... used by Governments, international
organizations and business whenever these trade
terms are referred to in abbreviated form and
mutually promote their use in support of a common
approach to trade facilitation.”
55
(b) encourage their use in commercial transactions
when currencies are expressed in coded or
abbreviated form.
Use of Aligned Invoice Layout Key
UN/CEFACT, Recommendation No. 6.
“The
Working Party ...noting that the recommended
layout key would offer sufficient flexibility for
adaptation to various national, commercial and
teclinical needs decided to recommend that
Governments... should adopt an aligned invoice
layout key for international trade based on (this)
Recommendation as an integral part of their
respective national series of aligned forms, that they
should encourage its use in the greatest possible
number of commercial transactions and that the
aligned invoice should be accepted by their
competent authorities to complement or replace
some or all of the administrative documents
required hitherto.”
Use of Codes for the Identification of ships
UN/CEFACT, Recommendation No. 10 “...agreed to
recommend to participants in international trade
including shipowners, port authorities and other
parties involved in the maritime transport of goods:
1.1 to use the International Maritime Organisation’s
Ship Identification Number Scheme for the
unique identification of ships.
1.2 To use only the final seven characters of the
IMO number in EDI applications.”
Official adoption of agreed location codes
(UN/LOCODE)
UN/CEFACT,
Recommendation No.
16 “
Recommends that the five-character code system
described hereafter should be used for purposes of
trade to designate locations whenever there is a
need for a coded representation for the names of
ports, airports, inland clearance depots, inland
freight terminals and other transport related
locations, such as places of receipt and delivery,
which are used for goods movements associated
with trade (for example locations where Customs
clearance of goods can take place), or otherwise
proposed by Governments;”
Use of codes for dates, times and periods of
time
UN/CEFACT, Recommendation No. 7 “... recom
mended Governments and international organi
zations to accept and use, and to promote the
general acceptance of, the methods set out of
expressing dates, time and periods of time,
whenever these data are to be used in numerical
form in international trade.”
Use of a Unique Identification Code (UNIC)
UN/CEFACT, Recommendation No. S/Rev. I
“...agreed to recommend:
“1. To the parties responsible for international trade
transactions at different stages the use of a Unique
Identification Code created in accordance with the
provisions set out (in the body of the
Recommendation No. 8);
“2. To Governments and national trade facilitation
bodies;
“2.1. The promotion of the acceptance of the
Unique Identification Code Methodology, e.g. by
adopting it in relevant national official or private
documentary procedures, including national series
of standardized documents used in international
trade, trade data interchange messages and, where
possible, in the marking of shipments; ...”
Use of Codes for Units of Measure
UN/CEFACT, Recommendation No. 20 “..recom
mend that participants in international trade when
there is a need for coded representation of units of
measure use a single list of code elements for use
worldwide in administration, commerce, transport,
science and technology.
Use of Packaging Codes
UN/CEFACT, Recommendation No. 21. "... recom
mends Governments and organizations responsible
for relevant national regulations and practices
related to the movement of goods in international
trade to support international facilitation work by
considering the codes described in the (present)
Recommendation with a view to introducing them
in such regulations and in practice;”
Use of International Currency Codes
UN/CEFACT, Recommendations No. 9 “ The
Working Party ... agreed to recommend that
Governments members of the
Economic
Commission for Europe and international organi
zations concerned, as well as other participants in
international trade, should:
(a) accept and use the three-letter alphabetic codes
. of International Standard ISO 4217, "Codes for
the representation of currencies and funds", for
application in international trade; and
“Recommends organizations responsible for inter
national instruments that contain codes such as
those covered by the (present) Recommendation to
consider harmonization of any such codes in
accordance with those presented (hereafter) when
reviewing existing or preparing new international
provisions;”
56
“Recommends participants in international trade,
when there is a need to use codes to represent
different types of cargo, packages, and packaging
materials, to use the numeric codes presented in
(this) recommendation, and - when there is a need
for such codes to represent names of packages - to
use the complementary alphabetic codes.”
national government of that country should take
appropriate action to initiate, support and encourage
the use of the UN/EDIFACT standard for
international transactions in that particular field.
The same pertains, mutatis mutandis, for the
executive bodies of economic regions...”
Use of Standard Consignment Instructions
UN/CEFACT, Recommendation No. 22 "The
Working Party ... “Recommends that the layout key
(appended to the present recommendation) be used
as a basis for the design of Standard Consignment
Instructions intended to convey instructions from
either a seller/consignor or a buyer/consignee to a
freight forwarder, carrier or his agent, or other
provider of service, enabling the movement of
goods and associated activities."
The commercial use of Interchange
Agreements for Electronic Data Interchange
UN/CEFACT,
Recommendation
No.
26,
“.. .recommend that:
1. The international community of EDI users,
including commercial parties deciding to use
Electronic Data Interchange in connection with
international trade transactions, apply the Model
Interchange Agreement for the International
Commercial Use of Electronic Data Interchange as
set out below in order to increase the legal security
of their trading relationship.
Use of Freight Codes
UN/CEFACT. Recommendation No. 23, “...Re
commends that the naming system for freight costs
and other charges described be accepted and used
by international and national organisations,
transport operators, transport users and other
interested parties and that its acceptance and use is
promoted by national trade facilitation bodies;
2. United Nations member countries take into
account the terms and provisions of the Model
Interchange
Agreement
when
introducing
legislative and regulatory reforms, in order for these
reforms to be consistent with the intentions and
business practices which are the substance of the
Model Interchange Agreement.
3. In negotiating and entering into interchange
agreements, the use of the Model Interchange
Agreement for the International Commercial Use of
Electronic Data Interchange is endorsed...”
“Further recommends that the coding system
referred to as the “Freight Cost Code (FMC) be
used whenever there is a need for coded
representation of plain language names for freight
costs and other charges.”
Use of trade data elements internationally
(ISO 7372)
UNECE, United Nations Trade Data Elements
Directory (TDED), paragraph 1.1. “The standard
data elements included in the Directory are intended
to facilitate interchange of data in international
trade.
Use of Trade and Transport Status Codes
UN/CEFACT,
Recommendation
No.
24,
“.recommends that Governments and business do
implement the Trade and Transport Status codes in
support of a common approach to trade facilitation.”
Use of the EDI standard
UN/CEFACT,
Recommendation
“.. .recommends that:
No.
These standard data elements can be used with any
method of data interchange, on paper documents as
well as with other means of data communication;
they can be selected for transmission one by one, or
used within a particular system of interchange rules,
e.g. the United Nations syntax rules for Electronic
Data Interchange For Administration, Commerce
and Trans-port (UN/EDIFACT) developed within
the ECE and published as International Standard
ISO 9735. Sections 1, 2, 3, 4 and 9 of the Directory
constitute International Standard ISO 7372.”
25,
9. Governments should use the UN/EDIFACT
standards for international applications of electronic
data interchange (EDI) among different parties
within the public sector as well as between public
authorities on the one hand and parties of the private
sector on the other hand
10. Whenever, in a particular field of business
and/or administration of a country, both private and
public parties are involved, and if the introduction
of EDI as a modem tool of communication
techniques is deemed advisable in that field or has
proved to be worthwhile in similar cases within
other countries, regions or communities, the
Standards and certification systems should
not create obstacles to trade
WTO, Agreement on Technical Barriers to Trade,
Article 2./. _Members shall ensure that in respect of
technical regulations, products imported from the
57
their technical regulations except when such
international standards or relevant parts would be an
ineffective or inappropriate means for the fulfilment
of the .legitimate objectives pursued, for instance
because of fundamental climatic or geographical
factors or fundamental technological problems.
territory of any Member shall be accorded treatment
no less favourable than that accorded to like
products of national origin and to like products
originating in any other country.
Use of International Standards
JPTO, Agreement on Technical Barriers to Trade,
Article 2.2: Where technical regulations are
required and relevant international standards exist
or their completion is imminent, Members shall use
them, or the relevant parts of them, as a basis for
I.
Legal aspects of trade facilitation
The Electronic Commerce Agreement, hereinafter
referred to as the "E-Agreement", is intended to
serve the commercial requirements of business to
business electronic commerce partners. It contains a
basic set of provisions which can ensure that one or
more
electronic
commercial
transactions,
hereinafter referred to as "E-Transactions", may
subsequently be concluded by commercial partners
within a sound legal framework.
Use of Uniform Rules of Conduct for
Interchange of Trade Data by Tele
transmission (UNCID)
ICC, The UNCID Rules, developed within a Special
Joint Committee of the International Chamber of
Commerce (ICC), aim at facilitating the interchange
of trade data effected by teletransmission, through
the establishment of agreed rules of conduct
between parties engaged in such transmission.
The E-Agreement aims at addressing all forms of
electronic communications available to conclude ETransactions. Commercial partners engaged into
contractual relations based exclusively on EDI are
recommended to continue to use the EDI
Interchange Agreement. Commercial partners
engaged in contractual relations based on the use of
a combination of electronic commerce technologies
including EDI are recommended to use the EAgreement and, to the extent necessary, replace the
use of an EDI Interchange Agreement by the EAgreement.”
Electronic Commerce Agreement
UN/CEFACT, Recommendation No. 31, “proposes
with this Recommendation a model for a contractual
approach of electronic commerce operations. This
approach takes into consideration the need for a
framework of basic provisions to be agreed by
business entities combined with the flexibility
required to conduct day-to-day commercial
transactions.
58
Section IV
INTERNATIONAL ORGANIZATIONS DEALING WITH
TRADE FA CILITA TION'
Uniform Customs and Practice for
Documentary Credits
UCP
INTERNATIONAL CIVIL AVIATION
ORGANIZATION (ICAO)
http://www. icao. org
Documentary credits have become a standard means
of settling payment for imports and exports
throughout the world. For many years virtually all
documentary credit operations have been carried out
in accordance with the Uniform Customs and
Practice for Documentary Credits (UCP). The most
recent version (UCP 500) was approved by the
Convention on International Civil Aviation,
1944 (as amended)
The Contracting Parties have agreed on certain
principles and arrangements in order that
international civil aviation may be developed in a
safe and orderly manner, that international air
transport services may be established on the basis of
equality of opportunity, and operated soundly and
economically.
Banking Commission in April 1993.
implementation date was 1 January 1994.
UNCID
Annex 9 of the Convention (Ninth Edition,
applicable on 15 November 1990) deals with the
facilitation of air traffic. Chapter 4 of the annex,
entitled “Entry and Departure of Cargo and Other
Articles”, includes standards and recommended
practices designed to facilitate international
movement of goods by air.
The
Uniform Rules of Conduct for
Interchange of Trade Data by
teletransmission
In September 1987, the ICC Executive Board
adopted the UNCID rules, which aim at facilitating
the interchange of trade data effected by
teletransmission, through the establishment of
agreed rules of conduct between parties engaged in
such transmission.
INTERNATIONAL CHAMBER OF
COMMERCE (ICC)
The UNCID rules are included in the United
Nations Trade Data Interchange Directory (see
TDED)
http://www.iccwbo.org
The International chamber of commerce is the
world business organization, the only representative
body that speaks with authority on behalf of
enterprises from all sectors in every part of the
world. With thousands of member companies and
associations from more than 130 countries, ICC
promotes an open international trade and investment
system and the market economy.
INTERNATIONAL CHAMBER OF
SHIPPING (ICS)
h ttp://www. marisec. org
The International Chamber of Shipping is a
voluntary association of national organizations
founded on the basis of private enterprise and
representing shipowners in various countries. Its
object is to enable shipping, through international
agreement amongst shipowners, to fulfil its primary
ICC also provides essential services, foremost
among them, the ICC International Court of
Arbritation, the world’s leading arbitrage institution.
* This section includes only those international organizations which have developed the instruments listed in section III
59
WORLD CUSTOMS ORGANIZATION
(WCO)
function - the provision of cheap and efficient sea
transport and the development of the freedom of the
sea. Its concern is to secure the removal of all
unnecessary restrictions on world trade and world
sea transport.
littp://www. wcoomd. org
CCO Customs Convention on Containers,
1972 (UN Convention administered
by the WCO)
The ICS Standard Bill of Lading, aligned to the UN
Layout Key, is used worldwide as a basis for the
design of B/L forms. The ICS model layout for a
Standard Manifest combines, as far as possible, the
requirements of both manual and mechanical
methods for document preparation.
The objective of the Convention is the development
and facilitation of international carriage by con
tainer.
This Convention is similar to, and will eventually
supersede, the Customs Convention on Containers,
1956 (UNECE). It lays down standards for the
construction of containers, an approval system, and
provides container temporary importation and repair
facilities with minimum formalities. Containers
approved under the Convention will be accepted for
the transport of goods under Customs seal.
INTERNATIONAL MARITIME
ORGANIZATION (IMO)
http://www. imo, org
FAL
Convention
on
Facilitation
of
International
Maritime
Traffic,
1965. Latest edition 1998
HS
The purpose of this Convention is to facilitate
maritime transport by simplifying and minimizing
the formalities, documentary requirements and
procedures associated with the arrival, stay and
departure of ships engaged on international
voyages. It was originally developed to meet
growing international concern about excessive
documents required for merchant shipping.
Traditionally, large numbers of documents are
required by customs, immigration, health and other
public authorities pertaining to the ship, its crew and
passengers, baggage, cargo and mail. Unnecessary
paperwork is a problem in most industries, but the
potential for red tape is probably greater in shipping
than in other industries, because of its international
nature and the traditional acceptance of formalities
and procedures.
International Convention on the
Harmonized Commodity Description
and Coding System (1983)
The objectives of the Convention include the
facilitation
of
international
trade,
the
standardization of trade documentation and the
transmission of data. The collection, comparison
and analysis of trade statistics are facilitated by
reducing the expense incurred in re-describing,
reclassifying and re-coding goods from one
classification to another.
KC
International Convention on the Sim
plification and Harmonization of Cus
toms Procedures (Kyoto), 1973
The Kyoto Convention is designed to overcome
barriers to international trade that could be created
by the diversity and complexity of Customs
procedures and documentation in the various
countries. The Convention has 31 technical an
nexes, each dealing with a specific Customs
procedure or activity. Contracting parties undertake
to promote the simplification and harmonization of
Customs procedures, and, to that end, to conform
with the Standards and Recommended Practices
contained in the Annexes, but nothing prevents a
contracting party from granting greater facilities. A
contracting party must accept at least one Annex.
The Convention emphasizes the importance of
facilitating maritime traffic and demonstrates why
authorities and operators concerned with documents
should adopt the standardized documentation
system developed by IMO and recommended by its
Assembly for worldwide use. Contracting Parties to
the Convention undertake to bring about uniformity
and simplicity in the facilitation of international
maritime traffic.
In the respective amendments care has been taken to
ensure that new developments such as electronic
data-processing techniques and electronic business
are taken into account and that the standards for this
have been defined and are kept up to date.
60
RKC International Convention on the
Simplification and Harmonization of
Customs Procedures (Revised June
1999)
WORLD TRADE ORGANIZATION
(WTO)
http://www.wto.org
In 1994 the World Customs Organization undertook
a revision of the 1973 Convention. The revision was
aimed at providing a set of standard and simplified
principles, which would be the blueprint for
Customs procedures in the 21st Century. In June
1999 the Council of the World Customs
Organization adopted the revised texts. The revised
Convention, with its new structure and binding
obligations, provides the Customs administrations
with efficient and effective procedures that facilitate
the international movement of goods while ensuring
full compliance with national laws.
Founded in 1995 as a result of the Uruguay Round
(1987-1993), the WTO succeeded the General
Agreement on Tariffs and Trade (GATT). The
WTO administers inter alia the legal provisions of
the GATT 1994, which include the tariff
concessions negotiated during the Uruguay Round,
as well as the whole of the legal decisions taken by
the Contracting Parties since the inception of the
GATT in 1947. In addition, it also administers the
General Agreement on Trade in Services (GATS)
and the Agreement on Trade-Related Aspects of
Intellectual Property Rights (TRIPS). The WTO has
currently 136 Members, including all industrialized
countries, but some 75% are developing countries.
The revised Convention contains all the core
principles of simple and standard procedures in a
single General Annex that is obligatory for
accession and implementation by Contracting
Parties. This key Annex in its 10 chapters covers
areas relating to the clearance of goods, payment of
duties and taxes, Customs and trade cooperation,
information to be supplied by Customs and appeals
in all Customs matters — areas of concern both to
the Customs administrations and to the trading
community.
It
also
requires
Customs
administrations to use risk management techniques
and it promotes the use of information technology.
The diversity and complexity of core Customs
procedures in various countries will be eliminated
since no reservations can be entered against the
provisions of this annex.
In the GATT 1994, Articles V (Freedom of Transit),
Article VII (Valuation for Customs Purposes),
Article VIII (Fees and Formalities connected with
Importation and Exportation), Article EX (Marks of
Origin), and Article X (Publication and
Administration of Trade Regulations) contain
obligations for Members which are aimed at easing
the conduct of international trade transactions.
In addition, several WTO Agreements have a direct
bearing for trade facilitation. These are the
Agreements on Customs Valuation, Import
Licensing Procedures, Preshipment Inspection,
Rules of Origin, Technical Barriers to Trade, as
well as the Agreement on the Application of
Sanitary and Phytosanitary Measures.
The General Agreement on Trade in Services
(GATS), with its annexed schedules, provides for
liberalization in a number of service industries
which are vital for the facilitation of trade, e.g.
transport, financing, telecommunications. The
Agreement on Trade-Related Aspects of Intellectual
Property Rights (TRIPS) contains a section on
border measures which allows members to take
specific measures to prevent the inflow of
counterfeit and pirated goods.
The revised Convention also has 10 specific
annexes with a total of 25 chapters dealing with
different Customs procedures. Contracting Parties
may accede to only those specific annexes and/or
chapters that are relevant to them and can enter
reservations only to Recommended Practices in the
chapters they accept.
Comprehensive implementation guidelines have
also been developed for all the annexes of the
Convention in order to ensure that the procedures
are applied in a uniform and effective manner.
61
containers, across one or more frontiers, provided
that some portion of the journey between the
beginning and the end of the TIR transport is made
by road.
UNITED NATIONS ECONOMIC
COMMISSION FOR EUROPE (UNECE)
http://www. unece, org
UNECE is one of the five regional arms of the
United Nations and was set up to develop economic
activity and strenghten economic relations within
the UNECE region and between this region and the
rest of the world.
The TIR system is based on the following basic
rules:
1. The goods must travel in secure (agreed)
vehicles or containers;
2. Duties and taxes at risk in the transit country
must be covered by an internationally valid
guarantee;
3. The goods must be accompanied by an
internationally accepted Customs document
(TIR) Carnet;
4. Customs control measures (e.g. seals affixed)
taken in the country of departure should be
accepted by the countries of transit and
destination.
5. Transport operators using the TIR system as well
as, national associations issuing TIR Carnets
must be authorized by Customs authorities and
registered in the international TIR data bank.
UNECE provides a regional forum for governments
to develop conventions, norms and standards with
the aim of harmonizing action and facilitating
exchanges between member States through the
elimination of obstacles and the simplification of
procedures.
UNECE’s main areas of activity are: economic
analysis, environment, transport, development of
trade, industry and enterprise, forests and timber,
sustainable energy, statistics and human settlements.
UNECE is a key player in the development of
international
trade
facilitation
tools
and
recommendations.
UNECE
developed
UN/
EDIFACT, the international standard for electronic
trade, and is host to the United Nations Centre for
Trade Facilitation and Electronic Business
(UN/CEFACT). Further information on the work of
UN/CEFACT is provided below.
HAR
UN/CEFACT Centre for Trade Facilitation
and Electronic Business
http:// www.uncefact.org
UN/CEFACT is a worldwide forum for inter
governmental cooperation with international
organizations and the business community, to reach
a consensus on priorities and policies in trade
facilitation work and, to develop recommendations
for the simplification and standardization of
international trade formalities and procedures.
UN/CEFACT is under the auspices of UNECE.
The results of its work include aligned trade
documents, the UN Trade Data Elements Directory
(UNTDED), the UN Trade Data Interchange
Directory (UNTDID, which contains the syntax
rules and directories for UN/EDIFACT), and other
formal recommendations.
International Convention on the
Harmonization of Frontier Control
of Goods, 1982 (UNECE)
http://www. unece. org/trans/new tir/
conventions/list.htm
The Convention aims at reducing the requirements
for completing formalities, as well as the number
and duration of controls, in particular through
national and international coordination of control
procedures and of their methods of application.
Annexes to the Convention deal with the following
types of control: Customs, medico-sanitary,
veterinary, phytosanitary, technical standards and
quality.
Depending on the subject matter, UN/CEFACT
recommendations are addressed to Governments, to
international or national organizations active in the
field of international trade, or to companies
involved in such activities.
Several recommendations issued by UN/CEFACT
are based on International Standards issued by the
International Organization for Standardization
(ISO), or have been endorsed by ISO and issued as
International Standards. This is mentioned in the
title and, whenever relevant, in the text of individual
TIR
Customs Convention on the Interna
tional Transport of Goods under
Cover of TIR Carnets, 1975 (UNECE)
http://www.unece.org/trans/new tir/welc tir.htm
The Convention applies to the transport of goods in
road vehicles, combinations of vehicles or in
62
recommendations, for example in section II (Use of
trade data elements directory, ISO 7372); (Use of
country codes, ISO 3166); and in section G (Use of
EDDFACT standard, ISO 9735), etc.
UN/LOCODE Codes for Ports and
other locations). The codes are
published
yearly
on:
http://www.uncefact.org
Rec.No.l 7 PAYTERMS - Abbreviations for
Terms of Payment
Rec.No.l 8 Facilitation measures related to
International Trade Procedures.
Rec.No. 19 Codes for Modes of Means of
Transport
Rec.No.20 Codes for Units of Measure used in
International Trade
Rec.No.21 Codes for Passengers, Types of Cargo,
Packages and Packaging Materials
(with complementary codes for
package names)
Rec.No.22 Layout Key for Standard Consignment
Instructions
Rec.No.23 Freight Cost Code - FCC
Harmonization of the description of
freight costs and other charges
Rec.No.24 Trade and Transport Status Codes
(Supersedes Rec. on Harmonization of
Transport Status Codes)
Rec.No.25 Use of the UN Electronic Data
Interchange
for
Administration,
Commerce and Transport Standard
(UN/EDIFACT)
Rec.No.26 The Commercial Use of Interchange
Agreements for Electronic Data
Interchange
Rec.No.27 Preshipment Inspection
Rec.No.28 Codes for Types of Means of Transport
Rec.No.29 Codes for Types of Cargo
Rec.No.31 Electronic Commerce Agreement
The following recommendations have been adopted
by UN/CEFACT:
Rec.No.l
Rec. No.2
Rec. No.3
Rec. No.4
Rec. No.5
Rec. No.6
Rec. No.7
Rec. No.8
Rec. No.9
Rec.No. 10
Rec.No. 11
Rec.No. 12
Rec.No. 13
Rec.No. 14
Rec.No. 15
Rec.No. 16
United Nations Layout Key for Trade
Documents, March 1981 and an
Addendum
is
currently
under
development
Location of codes in documents used in
international trade, incorporated into
Recommendation No.l
ISO country code for representation of
names of countries, last revised
January 1996
National Trade Facilitation Bodies, last
revised June 1999
Abbreviations
of
INCOTERMS
Alphabetic code for Incoterms 2000,
last revised May 2000
Aligned Invoice Layout Key for
International Trade, last revised
September 1983
Numerical representation of Dates,
Time and Periods of Time, last revised
October 1988
Unique Identification Code Metho
dology - UNIC, January 1992 (Super
sedes the Recommendation on Com
mon Access Number, February 1978)
Alphabetic code for the Representation
of Currencies, February 1978
Codes for the Identification of Ships
(Supersedes the Recommendation on
Codes for Ships’ Names)
Documentary
aspects
of
the
International Transport of Dangerous
Goods
Measures to Facilitate Maritime
Transport Documents Procedures
Facilitation of Identified Legal
Problems in Import Clearance Pro
cedures
Authentication of Trade Documents by
means other than signature
Simpler Shipping Marks, September
1979
United Nations Codes for Trade and
Transport locations - UN/LOCODE
(Supersedes the Recommendation on
UNTDED
United Nations Trade Data
Elements Directory
The United Nations Trade Data Elements Directory
has been compiled on the basis of the work done in
the Working Party on Facilitation of Trade
Procedures now known as UN/CEFACT. In this
Directory agreed sets of standard data elements
have been included for various areas of application.
Sections 1, 2, 3, 4 and 9 of UNTDED constitute
International Standard ISO 7372: 1993.
The standard data elements included in this
Directory are intended to facilitate interchange of
data in international trade.
These standard data elements can be used with any
method for data interchange on paper documents as
well as with other means of data communication.
63
UNTDID
United Nations Trade
Interchange Directory
http://www.edifact-wg.org
Data
UNITED NATIONS COMMISSION ON
INTERNATIONAL TRADE LAW
(UNCITRAL)
http://www.uncitral.org
UN/EDIFACT (the United Nations rules for Elec
tronic Data Interchange for Administration,
Commerce and Transport) comprise a set of
internationally agreed standards, directories, and
guidelines for the electronic interchange of
structured data, between independent computerized
information systems.
UNCITRAL was created in 1966 by the United
Nations General Assembly in order to enable the
United Nations to play a more active role in
reducing or removing legal obstacles to the flow of
international trade. The mandate given by the
General Assembly to UNCITRAL, as the "Core
legal body within the United Nations system in the
field of international trade law", was to further the
progressive harmonization and unification of the
law applicable to international trade transactions.
Recommended within the framework of the United
Nations, the rules are approved and published by
UNECE in the UNTDID and are maintained under
agreed procedures.
At its eighteenth session held in June 1985,
UNCITRAL adopted a recommendation on the
legal value of computer records, which addresses
some of the legal aspects of automatic interchange
of trade data. On 11 December 1985, the General
Assembly adopted Resolution 40/71 in which it
commended UNCITRAL for its Recommendation
and called upon Governments and international
organizations to take action in conformity with the
Commission’s recommendation.
UNTDID includes:
- Part 1 Introduction
- Part 2 Uniform rules of conduct for interchange
of Trade data by teletransmission (UNCID)
-Chapter 1. Introductory note
-Chapter 2. Text of the Uniform Rules of
Conduct
-Chapter 3. Interchange Agreement
- Part 3 Terms and Definitions
- Part 4 United Nations rules for Electronic Data
Interchange for Administration,
Commerce and Transport
-Chapter 1. Introduction
-Chapter 2. General information
- Establishment of United Nations Standard
Message Types (UNSMs)
- UN/EDIFACT message design rules for
EDI (latest version)
- General introduction to UNSM
- UN/CEFACT rules for presentation of
standardized message and directories
documentation R. 1023 (latest version)
- Part 5 United Nations Directories for electronic
data interchange for administration, commerce
and transport
- Chapter 1. Introduction
- Chapter 2. Message type directory xDMD
(EDMD and IDMD)
- Chapter 3. Segment directory xDSD (EDSD
and IDSD)
- Chapter 4. Composite data element directory
xDCD (EDCD and DDCD)
- Chapter 5. Data element directory EDED
- Chapter 6. Code lists
64
Annex
LIST OF COUNTRIES OR TERRITORIES HA VING
ACCEPTED OR ACCEDED TO TRADE
FA CILITA TION INSTR UMENTS
Country / Territory
Trade Facilitation instruments
IMO
FAl"’
Afghanistan
Albania
Algeria
Antigua and Barbuda
Argentina
Armenia
Aruba (Netherlands)
Australia
Austria
Azerbaijan
Azores (Portugal)
Bahamas
Bahrain
Bangladesh
Barbados
Belarus
Belgium
Belize
Benin
Bermuda (United Kingdom)
Bolivia
Bosnia and Herzegovina
Botswana
Brazil
Brunei Darussalam
Bulgaria
Burkina Faso
Burundi
Cameroon
Canada
Cape Verde
Cayman Islands
(United Kingdom)
Central African Republic
Chad
Channel Islands
(United Kingdom)
Chile
China
Colombia
UNECE
T1R'-’1
HAR1"
UN/
CEFACT(4’
ICC
ICAO
UCP
500(5)
(«)
+
+
+
+
+
+
+
+
+
+
+
+
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+
+
+
+
+
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+
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+
+
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(7)
+
+
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+
+
+
+
+
+
+
+
+
+
+
65
+
+
+
+
IMO
FAL"1
Comoros
Cook Islands
Costa Rica
Cote d'Ivoire
Croatia
Cuba
Cyprus
Czech Republic
Democratic People’s
Republic of Korea
Democratic People’s
Republic of the Congo
Denmark
Djibouti
Dominica
Dominican Republic
Ecuador
Egypt___________________
El Salvador
Equatorial Guinea
Eritrea
Estonia
Ethiopia
Fiji
Finland
France
French Polynesia
Gabon
Gambia
Georgia
Germany
Ghana
Gibraltar (United Kingdom)
Greece
Grenada
Guam (USA)
Guatemala
Guinea
Guyana
Haiti
Honduras
Hong Kong
Hungary
Iceland
India
Indonesia
Iran (Islamic Republic of)
Iraq
Ireland
Israel
Italy
Jamaica
Japan
_____
T1R'-’
UNECE
BAR <’>
UN/
CEFACT<4)
ICC
UCP
500
wco
ICAO
(6)
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(7)
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4-
4-
4-
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4-
4”
+
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4-
4-
4-
4-
4"
+
4-
+
+
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+
+
4-
4”
+
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4-
+
4"
4-
+
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4-
+
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44+
4-
4-
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4-
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66
+
IMO
Jordan
Kazakhstan
Kenya
Kiribati
Kyrgyzstan
Kuwait
Latvia
Lebanon
Lesotho
Liberia
Libyan Arab Jamahiriya
Liechtenstein
Lithuania
Luxembourg
Macao (China)
Madagascar
Madeira (Portugal)
Malawi
Malaysia
Mali
Malta
Marshall Islands
Mauritius
Mexico
Monaco
Mongolia
Montserrat (United Kingdom)
Morocco
Mozambique
Myanmar
Namibia
Nepal
Netherlands Antilles
Netherlands
New Caledonia (France)
New Zealand
Nicaragua
Nigeria
Niger
Niue Island
Norway
Oman
Pakistan
Panama
Papua New Guinea
Paraguay
Peru
Philippines
Poland
Polynesia
Portugal
Puerto Rico
Qatar
FAL"’
TIR1-’
+
+
UNECE
HAR‘”
UN/
cefact(4>
ICC
ICAO
UCP
500
(6)
+
+
wco
cco
(7)
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+
+
4-
+
+
+
+
4-
+
+
4-
+
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4+
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4-
4-
4+
4-
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67
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IMO
FAL"1
Republic of Korea
Republic of Moldova
Romania
Russian Federation
Rwanda
Saint Kitts and Nevis
Saint Lucia
Saint Pierre and Miquelon
Saint Vincent and the
Grenadines
Samoa
San Marino
Saudi Arabia
Senegal
Seychelles
Sierra Leone
Singapore
Slovakia
Slovenia
Solomon Islands
South Africa
Spain
Sri Lanka
Sudan
Suriname
Swaziland
Sweden
Switzerland
Syrian Arab Republic
Taiwan (Province of China)
Tajikistan
Tanzania
Thailand
The
former
Yugoslav
Republic of Macedonia
Togo
Tonga
Trinidad and Tobago
Tunisia
Turkey
Turkmenistan
Tuvalu
Uganda
Ukraine
United Arab Emirates
United Kingdom of Great
Britain and Northern Ireland
United States of America
Uruguay
Uzbekistan
Vanuatu
Venezuela
Viet Nam
ICC
ICAO
UN/
CEFACT14’
UCP
500<$)
(6)
cco
(7)
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HS c)'
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68
+
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IMO
FAL<“
Wallis and Futuna (France)
Yemen
Yugoslavia
Zambia
Zimbabwe
T1R<2’
UNECE
UN/
HAR
cefact<4>
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ICC
ICAO
UCP
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(6)
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Notes:
The list of Contracting Parties, States and Governments is constantly updated by the organizations responsible
for the trade facilitation instruments. It is recommended to visit the organizations’ websites, specified in Section
IV of this Compendium, for updated information.
..(1)
..
(2)
..
(3)
..
(4)
..
(5)
..
(6)
..
(7)
..
(8)
..
(9)
Contracting Governments as at 26 January 2000
Contracting Parties to the TER. Convention, 1975
Contracting Parties to the HAR Convention, 1985
Countries participating in the work of UN/CEFACT
Adherence list
Contracting States as at 30 August 2000
Signatures, ratifications and accesions as at 30 June 1999
Ratifications and accesions as at 30 June 1999
Contracting Parties as at 30 June 1999
69
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